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: Home Nursing $ 265,000 Meals On House- Wheels $ 406,000 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 $930,000 keeping. $ 259,000 465,000 117,000 197,000 151,000 465,000 148,000 209,000 108,000 70,500 8,700 41,000 20,800 44,700 20,800 7,900 16,000 114,800 40,100 38,200 36,500 186,000 53,000 81,200 51,800 416,000 122,600 168,300 125,100 $ 49,000 $ 25,400 $ 40,700 $ (17,100) The head administrator of Jackson County Senior Services, Judith Miyama, considers last year's net operating income of $49,000 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?