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 $928,000 $ 267,000 $403,000 $ 258,888 474,000 115,000 207,000 152,000 454,000 152,000 196,000 106,000 Revenues Variable expenses Contribution margin Fixed expenses ! Depreciation Liability insurance Program administrators' salaries General administrative overhead* Total fixed expenses Net operating income (loss) 70,200 8,600 40,900 20,700 44,200 20,800 7,600 15,800 115,600 40,300 38,800 36,500 185,600 53,480 80,600 51,600 415,600 123, 100 167,900 124,600 $ 38,400 $ 28,900 $ 28,100 $(18,600) "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 $38,400 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. 2b. Would a segmented income statement format be more useful to management in assessing the long-run financial viability of the various services