House keeping 925,000 $ 262,000 408,000 255,000 154,000 101,000 Meals On Home Nursing Total Wheels Revenues Variable expenses Contribution margin 466,000 459,000 114,000 198,000 148,000 210,000 Fixed expenses: Depreciation Liability insurance Program administrators' salaries General administrative overhead* 40,900 7,100 38,400 81,600 168,000 70, 200 43,300 115,000 185,000 413,500 8,500 20,900 40,600 52,400 20,800 15,300 36,000 51,000 123,100 Total fixed expenses 122,400 S 45,500 42,000 $(22,100) Net operating income (loss) 25,600 $ *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 $45,500 to be unsatisfactory, therefore, she is considering the poss ibility 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. 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