Jackson County Senior Services is a nonprofit organization devoted to providing essentlal services to seniors who live In thelr own

homes within the Jackson County area. Three services are provided for senlors$-$home nursing. Meals On Wheels, and housekeeping.

Data on revenue and expenses for the past year follow:

"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 $$44,600$ to

be unsatisfactory, therefore, she is considering the possibility of discontinuling the housekeeping program.

The depreclation 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 llability insurance and the salary of the program administrator

would be avolded.

Required:

$1-$a$.$ What is the financial advantage $($dlsadvantage$)$ of dlscontinuing the Housekeeping program?

$1-$b$.$ Based on the financlal advantage $($disadvantage$)$ of discontinulng the Housekeeping program calculated in requirement Req $1A,$

should the Housekeepling program be dlscontlinued?

$2-$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 financlal vlability of the

varlous services?

Complete this question by entering your answers in the tabs below.

Req $1B$

Would a segmented income statement format be more useful to management in assessing the long$-$run financial viability of

the various services?

Would a segmented income statement format be more useful to management in assessing the

Wourd a segmented income statement format be more long$-$run financial viability of the various services?