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 $ 930,000 469,000 461,000 $ 268,000 119,000 149,000 Meals On Wheels $ 408,000 190,000 218,000 House- keeping $ 254,000 160,000 94,000 69,500 8,300 40,400 20,800 44,200 20,700 7,900 15,600 115,000 40,800 38,200 36,000 186,000 53,600 81,600 50,800 414,700 123,400 168,100 123,200 $ 46,300 $ 25,600 $ 49,900 $ (29,200) The head administrator of Jackson County Senior Services, Judith Miyama, considers last year's net operating income of $46,300 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? 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? Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2A Req 2B Based on the financial advantage (disadvantage) of discontinuing the Housekeeping program calculated in requirement Req 1A, should the Housekeeping program be discontinued? Yes No 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 Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2A Req 2B Would a segmented income statement format be more useful to management in assessing the long-run financial viability of the various services? Yes No