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 seniorshome nursing, Meals On Wheels, and housekeeping. Data on revenue and expenses for the past year follow: Home Meals On House Total Nursing Wheels keeping Revenues $969,696 $269,996 $496,966 $ 249,696 Variable expenses 496,666 126,666 216,666 166,666 Contribution margin 416,666 146,666 196,666 86,666 Fixed expenses: Depreciation 66,696 6,996 46,666 29,696 Liability insurance 42,666 26,666 ?,666 15,666 ' ' 1 Program admlnistrators 115,666 46,666 38,666 37,666 salaries General admlnutratlve 169,696 52,996 66,966 46,696 overhead* Total Fixed expenses 465,666 126,666 165,666 126,666 Net operating income (loss) $ 5,393 $ 29,996 $ 25,666 $(46,666) *Allocated on the basis of program revenues. *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 $5,000 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 ifthe housekeeping program were dropped, but the liability insurance and the salary ofthe program administrator would be avoided. Required: 1a. What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? 1b. Based on the nancial advantage (disadvantage) of discontinuing the Housekeeping program calculated in requirement Reg 1A, should the Housekeeping program be discontinued? 2a. Prepare a properly formatted segmented income statement. 2b. Would a segmented income statement format be more useful to management in assessing the longrun nancial viability of the various services? Complete this question by entering your answers in the labs below. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2A Req 2B Prepare a properly formatted segmented income statement. Total Home Nursing Meals On House- Wheels keeping 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)