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 $ 926,000 $ 268,000 $ 400,000 $ 258,000 Variable expenses 477,000 119,000 202,000 156,000 Contribution margin 449,000 149,000 198,000 102,000 Fixed expenses: Depreciation 69,000 8,500 40,400 20,100 Liability insurance 43,300 20,300 7,800 15,200 Program administrators salaries 113,800 40,000 38,800 35,000 General administrative overhead* 185,200 53,600 80,000 51,600 Total fixed expenses 411,300 122,400 167,000 121,900 Net operating income (loss) $ 37,700 $ 26,600 $ 31,000 $ (19,900) *Allocated on the basis of program revenues. The head administrator of Jackson County Senior Services, Judith Miyama, considers last years net operating income of $37,700 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. 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-b. Would a segmented income statement format be more useful to management in assessing the long-run financial viability of the various services?