E Jackson County Senior Services is a nonprofit organization devoted to providing essential services to seniors who live in their own homes within the Jackson County area. Three services are provided for seniors-home nursing, Meals On Wheels, and housekeeping. Data on revenue and expenses for the past year follow: Revenues Variable expenses Contribution margin Fixed expenses: Home Meals On House- Total Nursing Wheels $ $ $ keeping $ 927,000 263,000 408,000 256,000 477,000 116,000 204,000 157,000 450,000 147,000 204,000 99,000 Depreciation Liability insurance 69,500 8,300 40,400 43,600 20,300 7,400 20,800 Program administrators' salaries 115,200 General administrative overhead* 185,400 Total fixed expenses 413,700 15,900 40,500 38,100 36,600 52,600 81,600 51,200 121,700 167,500 124,500 $ $ $ $ Net operating income (loss) 36,300 25,300 36,500 (25,500) *Allocated on the basis of program revenues. The head administrator of Jackson County Senior Services, Judith Miyama, considers last year's net operating income of $36,300 to be unsatisfactory; therefore, she is considering the possibility of discontinuing the housekeeping program. The depreciation in housekeeping is for a small van that is used to carry the housekeepers and their equipment from job to job. If the program were discontinued, the van would be donated to a charitable organization. None of the general administrative overhead would be avoided if the housekeeping program were dropped, but the liability insurance and the salary of the program administrator would be avoided. Required: 1-a. What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? 1-b. Based on the financial advantage (disadvantage) of discontinuing the Housekeeping program calculated in requirement Req 1A, should the Housekeeping program be discontinued? 2-a. Prepare a properly formatted segmented income statement. 2-b. Would a segmented income statement format be more useful to management in assessing the long-run financial viability of the various services? Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2A Req 2B What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? < Req 1A Req 1B >