House- Home Total Nursing Whee's keeping Revenues $932,000 $265,000 $410,000 $257,000 Variable expenses 461,000 110,000 195,000 156,000 Contribution margin 471,000 155,000 215,000 101,000 Fixed expenses Depreciation 69,600 9.600 40.700 20,300 Lisbility Insurance 43,500 20.300 7.400 15,800 Program as ministrators! 114,000 40,000 38,300 35,700 General administrative 186,400 53,000 82.000 overhead 51.400 Total Hoed expenses 413.500 121,900 168,400 123,200 Net operating Income $ 57,500 $ 33,100 $ 46,600 $ 22,200) Allocated on the basis of program revenues The head solministrator of Jackson County Senior Services, Judith Miyam, 1: concerned about the organization's finances and considers the net operating income of $57.500 last year to be szorthin (Last year's results were very similar to the results for previous years and are representative of what would be expected in the future. She feels that the organization should be building its financial reserves at a more repidrete in order to prepare for the next levitable recession. After seeing the sbove report Ms. Mlysmasked for more information about the financial advisability of perhaps discontinuing the housekeeping program The depreciation in housekeeping for a small von that is used to carry the housekeepers and their equipment from job to job. If the program were discontinued, the von would be donated to charitable organization. None of the general soiminetrative overhead would be avoided the housekeeping program were dropped, but the lisbility insurance and the salary of the program scministrator would be avoided. Required: 1-s. What the impact on net operating Income by discontinuing housekeeping program Totalt Differenos: Not Operating Current Total Housekeeping income increase Is Dropped or Deoreece Revenues Variable expenses Contribution margin Fix et eras Deprecation Liability insurance Program administrator salaries General administrative overhead Total expenses Not operating income (6) 15. Should the housekeeping program be discontinued O No 2-s. Prepare a segmented income statement Home Nursing Meals On Wheels House keeping Total Revenues Variable expenses Contribution margin Traceabi ad cxpenses Depreciation Liability insurance Program administratores Total traconbladecans Program segment margins General administrative overhead Net operating income (s)