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 Home Meals on House Total Nursing Wheels keeping 5923,000 5 266,000 $ 400,000 5 257,000 420.000 115,000 197.000 150,000 453,000 151,00 203,000 99,000 Revenues Variable expenses Contribution margin Fixed expenses Depreciation Liability insurance Program administrator salaries General administrative overhead Total fixed expenses litt operating Incone (los) 69,300 3,900 40,500 20,400 44,600 20,900 3.000 15,700 114,00 40,600 38,300 35,100 184,500 53,200 10,000 51.400 413.000 123,600 166.300 122,600 $ 40,000 $ 27,00 $ 36,200 $(23.600) "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 $40,000 10 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. Should the Housekeeping program be discontinued? 2.-a. Prepare a properly formatted segmented income statement 2-6 Would a segmented income statement format be more useful to management in assessing the long-run financial viability of the various services? Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Reg 2A Reg 28 What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? Reg 18 > Req 1A Reg 1B Req 2A Reg 2B Should the Housekeeping program be discontinued? Yes No Complete this question by entering your answers in the tabs below. Reg 1A Req 18 Red 2A Reg 28 Prepare a properly formatted segmented income statement Total Home Nursing Meals on Whool House keeping Revenues Variable expenses Contribution margin Traceable fixed expenses Depreciation Liability insurance Program administrators' salaties Total traceable food expenses Program segment margina General administrative overhead Net operating Income (ou) Reg 16 Reg 28 Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Req 2A Reg 28 Would a segmented income statement format be more useful to management in assessing the long-run financial viability of the various services? OYes ON
