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 $ 928,000 460,000 468,000 Home Nursing $ 267,000 110,000 157,000 Meals On Wheels $ 409,000 192,000 217,000 House- keeping $ 252,000 158,000 94,000 68,900 8,400 40,300 20,200 43,100 20,200 7,400 15,500 115,000 40,400 38,100 36,500 185,600 53,400 81,800 50,400 412,600 122,400 167,600 122,600 $ 55,400 $ 34,600 $ 49,400 $ (28,600) The head administrator of Jackson County Senior Services, Judith Miyama, considers last year's net operating income of $55,400 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. Req 1A Req 1B Req 2A Req 2B What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? Financial (disadvantage) Req 1A Req 1B Req 2A Req 2B Prepare a properly formatted segmented income statement. Revenues Variable expenses Contribution margin Traceable fixed expenses: Depreciation Liability insurance Program administrators' salaries Total traceable fixed expenses Program segment margins General administrative overhead Net operating income (loss) Meals On House- Total Home Nursing Wheels keeping 0 0 0 0 0 0 0 $ 0 $ 0 $ 0