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 $ 925,000 481,000 444,000 $ 266,000 111,000 155,000 Meals On Wheels $ 402,000 210,000 192,000 House- keeping $ 257,000 160,000 97,000 69,500 8,800 40,300 20,400 44,000 20,400 8,000 15,600 114,500 40,200 38,100 36,200 185,000 53,200 80,400 51,400 413,000 122,600 166,800 123,600 $ 31,000 $ 32,400 $ 25,200 $ (26,600) The head administrator of Jackson County Senior Services, Judith Miyama, considers last year's net operating income of $31,000 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 1B Req 2A Req 2B What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? Financial (disadvantage) < Req 1A Req 1B > 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 0 < Req 1B Req 2B >