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 $ 916,000 Home Nursing $264,000 Meals On Wheels $ 400,000 House- keeping $ 252,000 479,000 118,000 201,000 160,000 437,000 146,000 199,000 92,000 69,800 8,600 40,900 20,300 44,100 20,700 7,800 15,600 113,800 40,100 38,500 35,200 183,200 52,800 80,000 50,400 410,900 122,200 167,200 121,500 $ 26,100 $ 23,800 $31,800 $ (29,500) The head administrator of Jackson County Senior Services, Judith Miyama, considers last year's net operating income of $26,100 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? Reg 1A Req 18 Req 2A Req 28 Based on the financial advantage (disadvantage) of discontinuing the Housekeeping program calculated in requirement Req 1A, should the Housekeeping program be discontinued? No Req 1A Req 18 Req 2A Req 28 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) Meals On House- Total Home Nursing Wheels keeping 0 0 0 0 0 0 0 $ 0 $ $ 0 0 Would a segmented Income statement format be more useful to management in assessing the long-run financial viability of the various services? Yes No