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 Meals On House- Nursing Wheels keeping $ 920,000 263,000 403,000 $ 254,000 468,000 113,000 198,000 157,000 97,000 Home Total Revenues Variable expenses Contribution margin Fixed expenses: 452,000 150,000 205,000 40,500 7,300 38,100 80,600 166,500 Depreciation Liability insurance Program administrators' salaries General administrative overhead* 20,100 15,500 37,000 50,800 123,400 $ 39,800 27,700 $38,500 $(26,400) 69,200 43,200 115,800 184,000 412,200 8,600 20,400 40,700 52,600 122,300 Total fixed expenses Net operating income (loss) 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 $39,800 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 Req 2A Req 2B Req 1A Req 1B What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? Prepare a properly formatted segmented income statement. Meals On Home Nursing Wheels House keeping Total 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)