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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

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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 Total Nursing $ 928,000 $ 269,000 465,000 110,000 463,000 139000 Meals On Wheels $405,000 195,000 210,000 House- keeping 254,000 160,000 ,000 Variable expenses Contribution margin Pixed expenses: Liability insurance Progras administrator salaries General administrative overhead Total fixed expenses Net operating income (los) 69.300 2.500 40.500 20, JOO 43,800 20.200 7.000 15.000 116,300 41.000 39.000 6.300 185.600 53.800 81.000 50.800 415,000 1 00 1000112200 $ 48,000 $35,500 $ 41,700 (29,200) "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 $48,000 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 ability 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? 1b. 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

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