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Help Son & Era $ 925,688 gin 482,080 118, 080 $ 251,808 Fixed expenses: 443, 808 284, 683 158, 839 158, 090 Depreciation 282, 839

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Help Son & Era $ 925,688 gin 482,080 118, 080 $ 251,808 Fixed expenses: 443, 808 284, 683 158, 839 158, 090 Depreciation 282, 839 Liability insurance 69, 608 8,480 41,809 29, 208 Program administrators' salaries 43,908 28, 768 7,289 General administrative overhead" 116,108 16, 809 40, 589 38, 608 37, 898 Total fixed expenses 53, 6Be 81, 209 414,608 123, 208 168 , 800 123, 480 Net operating income (loss) $ 28, 408 $ 26, 808 $ 34,809 5 (32,420) `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 $28,400 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. it 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? this question by entering your answers in the tabs below

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