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: Total Home Nursing Meals On Wheels House-keeping Revenues $ 927,000 $ 266,000 $ 408,000 $ 253,000 Variable expenses 477,000 118,000 207,000 152,000 Contribution margin 450,000 148,000 201,000 101,000 Fixed expenses: Depreciation 70,700 8,900 41,000 20,800 Liability insurance 44,100 20,800 7,400 15,900 Program administrators salaries 115,500 40,900 38,000 36,600 General administrative overhead* 185,400 53,200 81,600 50,600 Total fixed expenses 415,700 123,800 168,000 123,900 Net operating income (loss) $ 34,300 $ 24,200 $ 33,000 $ (22,900) *Allocated on the basis of program revenues. The head administrator of Jackson County Senior Services, Judith Miyama, considers last years net operating income of $34,300 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?