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 Heals on House- Total Nursing Wheels keeping 5 925,000 $ 267,000 $ 406,000 5 252,000 478,000 119.000 205,000 151.000 447 000 148.000 190.000 101.000 Revenues Variable expenses Contribution margin Fixed expenses Depreciation Lisbility Insurance Program administrator salaries General administrative overhead Total Fixed expenses Het operating incoe Closs) 78,000 8,700 40,700 20,600 43,100 20,300 7,200 15,600 115,800 40,900 38,100 36,800 185,000 53,400 81.200 50,400 1,900 12.300 167,200 123.400 $33,100 $ 24,700 530,500 $(22,400) "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 $23,100 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 at the housekeeping program were dropped, but the ability 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 TA should the Housekeeping program be discontinued? 2a Prepare a properly formatted segmented income statement 2-5 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 2A Reg 20 What is the financial advantage disadvantage of discontinuing the Housekeeping program DE a charitable organization. None of the general administrative ov would be avoided if the housekeeping program were dropped, but the liability insurance and the salary of the program ad 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 requireme 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 viab various services? Complete this question by entering your answers in the tabs below. Req IA Reg 1B Reg 2A Reg 2B Based on the financial advantage (disadvantage) of discontinuing the Housekeeping program calculated in requirement Req 1A, should the Housekeeping program be discontinued? Yes No program The depreciation in housekeeping is for a small van that is used to carry the housekeepers and their equipment from program were discontinued the van would be donated to a charitable organization. None of the general administrati would be avoided if the housekeeping program were dropped, but the liability insurance and the salary of the progra 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 requir 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 various services? Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Req 2A Req 2B Would a segmented income statement format be more useful to management in assessing the long-run financial viability of the various services? Yes No
