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:

$*$Allocated on the basis of program revenues.

The head administrator of Jackson County Senior Services, Judith Miyama, considers last year's net operating income of

$$42,800$ 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?