Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
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: Total $ 927,000 484,000 443,000 Home Nursing $ 265,000 116,000 149,000 Meals On Wheels $ 402,000 208,000 194,000 House- keeping $ 260,000 160,800 100,000 Revenues Variable expenses Contribution margin Fixed expenses: Depreciation Liability insurance Program administrators' salaries General administrative overhead Total fixed expenses Net operating income (loss) 69,900 43,800 114,800 185,400 413,900 $ 29, 100 8,300 20,800 40,400 53,000 122,500 $ 26,500 40,790 7,700 38,700 80,400 167,500 $ 26,500 20,980 15,300 35,700 52,800 123,900 $ (23,900) "Allocated on the basis of program revenues. The head administrator of Jackson County Senior Services, Judith Miyamo, considers last year's net operating income of $29,100 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? 1-6. 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. Would o segmented income statement format be more useful to management in assessing the long-run financial viability of the various services? Complete this question by entering your answers in the tabs below

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction To Industrial Energy Efficiency Energy Auditing Energy Management And Policy Issues

Authors: Patrik Thollander, Magnus Karlsson, Patrik Rohdin, Johan Wollin, Jakob Rosenqvist

1st Edition

0128172479, 978-0128172476

More Books

Students also viewed these Accounting questions

Question

1. What are the pros and cons of diversity for an organisation?

Answered: 1 week ago

Question

1. Explain the concept of diversity and equality in the workplace.

Answered: 1 week ago