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: Revenues Variable expenses Contribution margin Fixed expenses: Depreciation Liability insurance Program administrators' salaries General administrative overhead Total fixed expenses Net operating income (loss) "Allocated on the basis of program revenues. Total Home Nursing $ 262,000 111,000 151,000 Meals On Wheels $ 404,000 200,000 House- keeping $ 254,000 154,000 100,000 $ 920,000 465,000 455,000 204,000 69,300 8,600 40,300 20,400 42,600 20,400 7,100 15,100 115,700 40,500 38,300 36,900 184,000 52,400 80,800 50,800 411,600 121,900 166,500 123,200 $ 43,400 $ 29,100 $ 37,500 $ (23,200) The head administrator of Jackson County Senior Services, Judith Miyama, considers last year's net operating income of $43,400 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. Req 1A Req 1B Req 2A Req 2B What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? Req 1A Req 18 Req 2A Req 2B Prepare a properly formatted segmented income statement. 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) Total Home Nursing Meals On Wheels House- keeping 0 0 0 0 0 0 0 0 0 $ 0 $ 0 $ 0 0