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 seniorshome nursing, Meals On Wheels, and housekeeping. Data on revenue and expenses for the past year follow: Total Home Nursing Meals On Wheels House- keeping Revenues $ 927,000 $ 268,000 $ 406,000 $ 253,000 Variable expenses 454,000 113,000 191,000 150,000 Contribution margin 473,000 155,000 215,000 103,000 Fixed expenses: Depreciation 70,600 8,800 40,900 20,900 Liability insurance 43,500 20,200 7,900 15,400 Program administrators salaries 114,600 40,200 38,300 36,100 General administrative overhead* 185,400 53,600 81,200 50,600 Total fixed expenses 414,100 122,800 168,300 123,000 Net operating income (loss) $ 58,900 $ 32,200 $ 46,700 $ (20,000) *Allocated on the basis of program revenues. The head administrator of Jackson County Senior Services, Judith Miyama, considers last years net operating income of $58,900 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?