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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

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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 $ 927,000 460,000 467,000 Home Nursing $ 267,000 112,000 155,000 Meals on Wheels $ 405,000 191.000 214,000 House- keeping $ 255,000 157,000 98,000 Revenues Variable expenses Contribution margin Tixed expenses Depreciation Liability insurance Program administratore salaries General administrative overhead Total fixed expenses Net operating incon (loos) 68,900 43,300 114,900 185,400 412.500 $ 54,500 8,200 20,400 40,100 53,400 122, 100 $ 32,900 40,500 7.600 38,600 81,000 167,700 $ 46,300 20.200 15,300 36,200 51,000 122,700 $(24,700) *Allocated on the basis of program revenues. The head administrator of Jackson County Senior Services, Judith Miyamo, considers last year's net operating Income of $54,500 to be unsatisfactory, therefore, she is considering the possibility of discontinuing the housekeeping program The depreciation in housekeeping is for a small von 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? 2-0. 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

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