Jackson County Senior Services is a

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 seniors-home nursing, Meals On Wheels, and housekeeping Data on revenue and expenses for the past year follow: Home Meals On House- Nursing Wheels keeping $ 927,000 $ 269,900 $ 405,000 $ 253,000 160,000 93,000 Total Revenues Variable expenses 470,000 457,000 119,000 150,000 191,000 214,000 Contribution margin Fixed expenses Depreciation 20,200 15,400 35,28e 50,600 121,400 $45,000 26,700 $ 46,700 (28,400) 69,100 43,900 113,608 185,400 412,000 8,500 20,900 40,100 53,800 123,300 40,400 7,600 38,300 81,000 167,300 iability insurance Program administrators' salaries General administrative overhead* Total fixed expenses Net operating income (loss) 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 $45,000 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. 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