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	$ 267,000	$ 408,000	$ 253,000
Variable expenses	471,000	112,000	204,000	155,000
Contribution margin	457,000	155,000	204,000	98,000
Fixed expenses:
Depreciation	70,300	8,600	40,900	20,800
Liability insurance	44,000	20,900	7,400	15,700
Program administrators salaries	114,400	40,100	38,000	36,300
General administrative overhead*	185,600	53,400	81,600	50,600
Total fixed expenses	414,300	123,000	167,900	123,400
Net operating income (loss)	$ 42,700	$ 32,000	$ 36,100	$ (25,400)

*Allocated on the basis of program revenues.

The head administrator of Jackson County Senior Services, Judith Miyama, considers last years net operating income of $42,700 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

What is the financial advantage (disadvantage) of discontinuing the Housekeeping program?

Prepare a properly formatted segmented income statement.

	Total	Home Nursing	Meals On Wheels	House-keeping
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)