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 $ 931,000 479,000 Home Nursing $270,000 Meals On Wheels House- keeping $404,000 $ 257,000 118,000 203,000 158,000 452,000 152,000 201,000 99,000 69,800 9,000 40,500 20,300 43,800 20,300 7,700 15,800 114,500 40,300 38,200 36,000 186,200 54,000 80,800 51,400 414,300 123,600 167,200 123,500 $ 37,700 $ 28,400 $ 33,800 $ (24,500) The head administrator of Jackson County Senior Services, Judith Miyama, considers last year's net operating income of $37,700 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 avoided. Required: 1-a. What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? 1-b. 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? Complete this question by entering your answers in the tabs below. Req 1A Req 18 Req 2A Req 28 What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? Beg 1A Req 18 > Complete this question by entering your answers in the tabs below. Req 1A Req IB Req 2A Req 28 Based on the financial advantage (disadvantage) of discontinuing the Housekeeping program calculated in requirement Req 1A, should the Housekeeping program be discontinued? OYes ONO Complete this question by entering your answers in the tabs below. Req 1A Req 1B 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 Complete this question by entering your answers in the tabs below. Req 1A Req 18 Req 2A Req 28 Would a segmented income statement format be more useful to management in assessing the long-run financial viability of the various services? Yes ONO < Req 2A Req 2