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 Meals On House Total Nursing Wheels keeping $ 934, eee $ 270,000 $400,000 $256,000 486,000 118, eee 21e eee 158,000 448,eee 152,000 198,000 98.000 Revenues Variable expenses Contribution margin Fixed expenses: Depreciation Liability insurance Program administrators' salaries General administrative overhead Total fixed expenses Net operating income (loss) 69,300 8,480 40, 700 20,200 43,600 20,700 7.300 15,600 113,700 40,100 38,600 35,eee 186,800 54, eee 81,600 51,200 413,400 123,200 168,200 122.000 $ 34,600 5 28,800 $ 29,8ee $(24.ee) "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 $34,600 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 2-6. Would a segmented income statement format be more useful to management in assessing the long-run financial viability of the various services? Answer is complete but not entirely correct. Complete this question by entering your answers the tabs below. Reg 1A Reg 13 Reg 2A Reg 28 What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? Financial (disadvantage) $ 39,2003 Reg 1A Reg 1B > rogram pe discontin 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 various services? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2A Reg 2B Prepare a properly formatted segmented income statement. $ Total Home Nursing 934,000 $ 270,000 486,000 118,000 448,000 152,000 Meals On Wheels $ 408,000 210,000 198,000 House- keeping $ 256,000 158,000 98,000 Revenues Variable expenses Contribution margin Traceable fixed expenses: Depreciation Liability insurance Program administrators' salaries Total traceable fixed expenses Program segment margins General administrative overhead Net operating income (loss) 69,300 43,600 113,700 8,400 20,700 40,100 40,700 7,300 38,600 20,200 15,600 35,000 70,800 27,200 69,200 82,800 86,600 111,400 $ $ $ 226,600 221,400 183,000 38,400 X
