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:
Reg 1A Reg 1B Reg 2 Reg 2B 1 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: Prepare a properly formatted segmented income statement. 6.25 points Total Home Nursing Meals On Wheels House- keeping Home Meals On House- Total Nursing Wheels keeping S 921,808 $ 263,088 S 406,920 5 252,888 474,000 114,200 206,820 154,800 447,800 149,000 200,000 98,000 eBook 0 ol 0 0 Revenues Variable expenses Contribution margin Fixed expenses: Depreciation Liability insurance Program administrators' salaries General administrative overhead Total fixed expenses Net operating income (105) Print 69,700 8,500 40,300 20,900 43,900 20,300 7,700 15,900 115,300 40,900 38,580 35,906 184,200 52,682 81,280 58,480 413,100 122,380 167,700 123, 100 33,900 $ 26,700 $ 32,300 $(25,100) 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) References 0 $ 0 0 0 s 0 0 s 0 0 0 "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 $33.900 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. 2-6. Would a segmented income statement format be more useful to management in assessing the long-run financial viability of the various services? > Reg 1A Reg 1B Req 2A Reg 2B Would a segmented income statement format be more useful to management in assessing the long-run financial viability of the various services? Complete this question by entering your answers in the tabs below. Yes No Reg 1A Reg 1B Reg 2A Reg 28 What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? Reni Req 1B > Req 1A Reg 1B Req 2A Reg 2B End of document - Should the Housekeeping program be discontinued? Yes No
