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 $ 928,000 $ 266,000 $ 404,000 $ 258,000 Variable expenses 473,000 111,000 209,000 153,000 Contribution margin 455,000 155,000 195,000 105,000 Fixed expenses: Depreciation 69,500 8,600 40,500 20,400 Liability insurance 44,300 20,800 7,800 15,700 Program administrators salaries 115,500 40,700 38,500 36,300 General administrative overhead* 185,600 53,200 80,800 51,600 Total fixed expenses 414,900 123,300 167,600 124,000 Net operating income (loss) $ 40,100 $ 31,700 $ 27,400 $ (19,000) *Allocated on the basis of program revenues. The head administrator of Jackson County Senior Services, Judith Miyama, considers last years net operating income of $40,100 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-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?