Hello,

Attached is a Word document with a homework question I am struggling with. I know that I must be close but am just missing some step or component. (call me Captain Obvious)...

Please show your work that I might learn where I am making my error.

I would hope to compensate you $40 in tutor credits for this assistance.

Respectfully yours,

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 seniorshome nursing, Meals On Wheels, and housekeeping. Data on revenue and expenses for the past year follow: Total Revenu es Variable expense s Contrib ution margin Fixed expense s: Depre ciation Liabilit y insuranc e Progra m administr ators' salaries Gener al administr ative overhead * Total fixed expense s Net operating income (loss) Home Nursing Meals On Wheels Housekeeping $917,000 $266,000 $401,000 $250,000 476,000 114,000 206,000 156,000 441,000 152,000 195,000 94,000 70,200 8,700 40,700 20,800 43,500 20,300 7,900 15,300 114,500 40,600 38,300 35,600 183,400 53,200 80,200 50,000 411,600 122,800 167,100 121,700 $ 29,400 $ 29,200 $ 27,900 $ (27,700) *Allocated on the basis of program revenues. The head administrator of Jackson County Senior Services, Judith Miyama, is concerned about the organization's finances and considers the net operating income of $29,400 last year to be too small. (Last year's results were very similar to the results for previous years and are representative of what would be expected in the future.) Therefore, she has asked for more information about the financial advisability of discontinuing the housekeeping program. The depreciation in housekeeping is for a van that transports housekeepers and their equipment from job to job. If the program were discontinued, the van would be donated to a charitable organization. Depreciation charges assume zero salvage value. 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: 1a. What is the impact on net operating income by discontinuing housekeeping program? (Input the amount as a positive value.) in net operating income by Decrease $ 57100 1b. Should the housekeeping program be discontinued? Yes No 2. Would a segmented income statement format be more useful to management in assessing the longrun financial viability of the various services. Yes No