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: Revenues Variable expenses Contribution margin Fixed expenses: Depreciation Liability insurance Program administrators' salaries General administrative overhead* Total fixed expenses Net operating income (loss) Total $ 923,000 467,000 456,000 69,800 43,800 116,100 184,600 414,300 $ 41,700 Home Nursing $ 261,000 115,000 146,000 8,500 20,800 40,400 52,200 121,900 $ 24,100 Meals On House-keeping Wheels $ 408,000 201,000 207,000 $ 254,000 151,000 103,000 * 40,300 21,000 7,700 15,300 38,800 36,900 81,600 50,800 168,400 124,000 $ 38,600 $ (21,000) *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 $41,700 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.

Jacison County Serikat Services is a nongroft organization devoted to providing essential services to seniors who live in their own homef within the Jackson County area. Three services are provided for seniors- home nursing, Meals On Wheel5, and housekeeping Data on revenue and expenses for the past year follow: XAllocated on the basis of program revenues The head adiminutrator of Jackson. County Senior Services. Judith Miyama, considers last year's net operating income of $41.700 to be unsabisfactory, therefore, she is considering the possibility of ciscontinuing the housekeeping program. The depreciation in housoikeeping is for a small van that is used to carry the housekeepers and their equipment from job to job If the program were discontinjed, the van would be donated to a charitable organization. None of the general administrative overhead Waula be avoded if the housekeeping program were dropped, but the liability insurance and the salary of the program administrator would be avoided Required: 1a. 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? Complete this question by entering your answers in the tabs below. What is the financial advantage (disadvantage) of discontinuing the Housekeeping program