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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

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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 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 $ 922,000 $266,000 $ 401,000 $ 255,000 466,000 116,000 190,000 160,000 456,000 150,000 211,000 95,000 Revenues Variable expenses Contribution margin Fixed expenses Depreciation Liability insurance Program administrators' salaries General administrative overhead Total Fixed expenses Bet operating income (loss) 59,100 8,200 40, 600 20,300 43,400 20,100 7,300 16,000 114,300 40,400 38,400 35,500 184,400 53,200 80,200 51,000 411,200 121,900 166,500 122,800 $ 44,800 $ 28,100 $ 44,500 $(27,800) "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 $44,800 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: 1-0. What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? 1-6. 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

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