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 $ 925,000 463,000 462,000 $ 268,000 118,000 150,000 Meals On Wheels $ 406,000 194,000 212,000 House-keeping $ 251,000 151,000 100,000 69,800 8,400 40,400 21,000 43,900 20,700 7,700 15,500 114,700 40,400 38,500 35,800 185,000 53,600 81,200 50,200 413,400 123,100 167,800 122,500 $ 48,600 $ 26,900 $ 44,200 $ (22,500) The head administrator of Jackson County Senior Services, Judith Miyama, considers last year's net operating income of $48,600 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 Prepare a properly formatted segmented income statement. Total Home Nursing Meals On Wheels House- keeping Revenues $ 925,000 $ 268,000 $ 406,000 $ 251,000 Variable expenses 463,000 118,000 194,000 151,000 Contribution margin 462,000 150,000 212,000 100,000 Traceable fixed expenses: Depreciation 8,400 0 40,400 21,000 Liability insurance 20,700 0 7,700 15,500 Program administrators' salaries 40,400 0 38,500 35,800 Total traceable fixed expenses 69,500 0 86,600 72,300 Program segment margins 392,500 $ 150,000 $ 125,400 $ 27,700 General administrative overhead 185,000 Net operating income (loss) 207,500