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 $ 929,000 $ 264,000 $ 407,000 $ 258,000 Variable expenses 467,000 116,000 198,000 153,000 Contribution margin 462,000 148,000 209,000 105,000 Fixed expenses: Depreciation 69,700 8,800 40,700 20,200 Liability insurance 43,900 20,800 8,000 15,100 Program administrators salaries 114,700 40,200 38,300 36,200 General administrative overhead* 185,800 52,800 81,400 51,600 Total fixed expenses 414,100 122,600 168,400 123,100 Net operating income (loss) $ 47,900 $ 25,400 $ 40,600 $ (18,100) *Allocated on the basis of program revenues. The head administrator of Jackson County Senior Services, Judith Miyama, considers last years net operating income of $47,900 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?

newconnes 252/activ ainment Seved Help Save would be dieu ll me housekeeping program were uruppeu, but the duty insurance anume Sdidly in programu would be avoided. Required: 1-a. What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? 1-6. Based on the financial advantage (disadvantage) of discontinuing the Housekeeping program calculated in requirement Req tA should the Housekeeping program be discontinued? 2-a. Prepare a properly formatted segmented income statement. 2-6. 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. Reg 1A Reg 1B Reg 2 Reg 2B What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? can't Keep 9