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 Meals On Wheels House-keeping Revenues $ 925,000 $ 269,000 $ 401,000 $ 255,000 Variable expenses 475,000 119,000 200,000 156,000 Contribution margin 450,000 150,000 201,000 99,000 Fixed expenses: Depreciation 69,900 8,700 40,900 20,300 Liability insurance 43,200 20,600 7,300 15,300 Program administrators' salaries 114,800 40,300 39,000 35,500 General administrative overhead* 185,000 53,800 80,200 51,000 Total fixed expenses 412,900 123,400 167,400 122,100 Net operating income (loss) $ 37,100 $ 26,600 $ 33,600 $ (23,100)

*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 $37,100 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?

Struggling with requirement 1 only, see below

0 Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req 1A -Req lB -Req 2A -Req 23 What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? Financial (disadvantage) O