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 Meals On Wheels House- keeping $ 917,000 $ 262,000 $400,000 $255,000 466,000 116,000 191,000 159,000 451,000 146,000 209,000 96,000 69,300 8,300 40,600 20,400 43,300 20,800 7,200 15,300 115,500 40,600 38,800 36,100 183,400 52,400 80,000 51,000 411,500 122,100 166,600 $ 39,500 $ 23,900 $ 42,400 $(26,800) 122,800 The head administrator of Jackson County Senior Services, Judith Miyama, considers last year's net operating income of $39,500 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. 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 28 What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? < Req 1A Req 1B >