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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: Hone Meals On House- Total Nursing Wheels keeping $935,000 $269,000 $410,000 $ 256,000 472.000 118,000 201,000 153,000 463,000 151,000 209,000 103,000 Revenues Variable expenses Contribution margin Fixed expenses Depreciation Liability insurance Program administrators salaries General administrative overhead Total fixed expenses Net operating income (lon) 69,100 3,500 40,200 20,400 44,200 20,700 8,000 15,500 115,700 40,600 38,500 36,600 187,000 53.800 82,000 51,200 416,000 123,600 168 700 123,700 $ 47,000 $ 27,400 $ 40,300 $(20,700) "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 $47,000 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 if the housekeeping program were dropped, but the lobility 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. 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

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