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 $927,000 470,000 457,000 Home Nursing $268,000 116,000 152,000 Meals On House- Wheels keeping $ 402,000 $ 257,000 195,000 207,000 159,000 98,000 70,300 8,900 40,700 20,700 44,200 20,800 7,500 15,900 115,700 40,100 38,800 36,800 185,400 53,600 80,400 51,400 415,600 123,400 167,400 124,800 $ 41,400 $ 28,600 $ 39,600 $(26,800) The head administrator of Jackson County Senior Services, Judith Miyama, considers last year's net operating income of $41,400 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?