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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
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, & housekeeping. Data on revenue & expenses for the past year follow:
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 $ 931.000 462.000 469,000 Home Meals On House Nursing Wheels keeping $ 269,000 $403,000 $259.000 117.000 194.000 151.000 152,000 209.000 108,000 Revenues Variable expenses Contribution margin Fixed expenses Depreciation Liability insurance Program administrators' salaries General administrative overhead Total Fixed expenses operating income (loss) 69,000 8.500 40,200 44.400 21.000 2.800 114,100 40 300 38,100 186,200 53.800 8 0,600 413,700 223,600 166,700 $ 55,300 $ 28,400 $ 42,300 20.300 15.600 35,700 1,800 123,400 $(15,400) "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 $55,300 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-. Prepare a properly formatted segmented income statement 2-5. Would a segmented income statement format be more useful to management in assessing the long-run financial viability of the 1-a: ?
1-b: ?
2-a: ?
2-b: ?
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