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Help Sau 16 ABC Senior Services is a nonprofit organization devoted to providing essential services to seniors who live in their own homes within the

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Help Sau 16 ABC 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 2012021 Home Meals On House- Total Nursing Wheels keeping $928,000 $269,000 $404,000 $255,000 478,000 119,000 200.000 151,000 450,000 150,000 196,000 104.000 Revenues Variable expenses Contribution margin Fixed expenses Depreciation Liability insurance Program administrators salaries General administrative overhead Total fixed expenses Net operating income (los) 70.300 8,900 40,400 21,000 43,300 20,400 7.200 15,700 116,100 40,700 30.600 36,800 105,500 53,800 40,4 0 0 51.000 415,200 122.800 167,000 124,500 $ 34.700 5 26.2005 29.000 20.500) *Allocated on the basis of program revenues. The head administrator or ABC Services, considers last year's not operating income of $34.700 to be unsatisfactory: therefore, she is considering the possibility of discontinuing the housekeeping program, The depreciation in housekeeping is for a small von 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 lability 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 ta, 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

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