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 Revenues $ 923,000 $266,000 $404,000 5 253,000 Variable expenses 469,000 116,080 202.000 151,000 Contribution margin 454,000 150,000 202,000 102,000 Fixed expenses: Depreciation 69,300 8,600 40,500 20,200 Liability insurance 44,300 20,600 7.700 16,000 Program administrators' salaries 115,400 40,300 38,600 36,500 General administrative overheads 184,600 53,200 80.800 50.600 Total fixed expenses 413,600 122,700 167,600 123,380 Net operating income (loss) $ 40,400 $ 27,300 $ 34,400 $(21,300) *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 $40,400 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. What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? 1-6. Based on the financial advantage (disadvantage) of discontinuing the Housekeeping program calculated in requirement Reg 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? various ser Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Reg 2A Reg 2B What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? Rea SA Reg 13 > various services? Complete this question by entering your answers in the tabs below. Reg 1A Reg 18 Reg 2A Reg 28 Based on the financial advantage (disadvantage) of discontinuing the Housekeeping program calculated in requirement Req 1A, should the Housekeeping program be discontinued? Oros ONO 2.0. Woud a segmented income statement format de more useiui to management in assessing ine iong-run inancial viabil various services? Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Reg 2A Req 2B Prepare a properly formatted segmented income statement. Total Home Nursing Meals On Wheels House- keeping Revenues Variable expenses Contribution margin Traceable fixed expenses Depreciation Liability insurance Program administrators' salarios Total traceable fixed expenses Program sogmont margins General administrative overhead Net operating income (loss) Required: 1-a. What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? 1-6. Based on the financial advantage (disadvantage) of discontinuing the Housekeeping program calculated in requirement Req 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 various services? Complete this question by entering your answers in the tabs below. Reg 1A Reg 18 Reg 2A Reg 2B Would a segmented Income statement format be more useful to management in assessing the long-run financial viability of the various services? Yes ONO
