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. Total Home Nursing Revenues Variable expenses Contribution margin $925,000 $ 266,000 Meals On Wheels $ 404,000 468,000 112,000 197,000 House-keeping $255,000 159,000 457,000 154,000 207,000 96,000 Fixed expenses: Depreciation 69,900 8,900 40,900 20,100 Liability insurance 44,000 20,400 7,800 15,800 Program administrators' salaries) 114,400 40,400 38,900 35,100 General administrative overhead" 185,000 53,200 80,800 51,000 Total fixed expenses Net operating income (loss) 413,300 $43,700 122,900 168,400 122,000 $31,100 5 38,600 $ (26,000) "Allocated on the basis of program revenues. The head administrator of Jackson County Senior Services, Judith Miyama, considers last year's net operating income of $43,700 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?