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 $936,000 $ 476,000 460,000 Home Nursing 268,080 $ 117,000 151,000 Meals On House- Wheels keeping 410,000 $ 258,888 201,000 158,000 209, 180,000 Revenues Variable expenses Contribution margin Fixed expenses: Depreciation Liability insurance Program administrators' salaries General administrative overhead Total fixed expenses Net operating income (loss) 70, 100 43,500 115,700 8,900 20,989 41,000 40,7ee 7,300 39,000 20,500 15,380 35,700 187,200 416,50 $ 43,500 $ 53,680 124,480 26,600 $ 82,800 51,600 169,800 123,100 40,000 $(23,100) "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 $43,500 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 All Cateu of the Udsis of program revenues Chech The head administrator of Jackson County Senior Services, Judith Miyama, considers last year's net operating income of $43.500 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 lob. 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? Complete this question by entering your answers in the tabs below. Reg 1A Req 1B Req 2A Req 2B What is the financial advantage (disadvantage) of discontinuing the Housekeeping program
