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 adninistrators' salaries General administrative overhead Total fixed expenses Net operating income (loss) "Allocated on the basis of program revenues. Total Hone Nursing $925,000 $265,000 Heals On Wheels $ 403,000 - keeping $257,000 468,000 116,000 201,000 151,000 457,000 149,000 202,000 106,000 68,900 8,200 40,100 20,600 42,700 20,400 7,200 15.100 115,600 41,000 38,800 35,800 185,000 53,000 80,600 51,400 412,200 122,600 166,700 122,900 $ 44,800 5 26,400 $35,300 $ (16,900) The head administrator of Jackson County Senior Services, Judith Miyama, considers last year's net operating income of $44,800 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?