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 $929, eee $ 270,eee $ 401,800 $ 258, Bee 474, cee 117,eee 202,800 155, eee 455,000 153,eee 199,000 103,eee Revenues Variable expenses Contribution margin Fixed expenses: Depreciation Liability insurance Program administrators' salaries General administrative overhead Total fixed expenses Net operating income (loss) 70,400 43,100 115, 2ee 185,800 414,500 $ 40,500 $ 8,900 20,200 40,100 54,eee 123,200 29,800 $ 40,900 20,600 7,700 15,200 38,800 36,300 80,200 51,600 167,600 123,700 31,400 $ (20,780) *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 $40,500 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-a. 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. 2-6. 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 Req 2A Req 28 What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Req 24 Reg 28 Should the Housekeeping program be discontinued? Yes Ono 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' salaries Total traceable fixed expenses Program segment margins General administrative overhead Net operating income (loss) Would a segmented income statement format be more useful to management in assessing the long-run financial viability of the various services? Yes INo
