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:

Total Home Nursing Meals On Wheels House$-$keeping

Revenues $ $929,000$ $ $268,000$ $ $408,000$ $ $253,000$

Variable expenses $481,000115,000209,000157,000$

Contribution margin $448,000153,000199,00096,000$

Fixed expenses:

Depreciation $69,0008,30040,50020,200$

Liability insurance $43,20020,3007,60015,300$

Program administrators$$ salaries $114,60040,70038,40035,500$

General administrative overhead$*185,80053,60081,60050,600$

Total fixed expenses $412,600122,900168,100121,600$

Net operating income $($loss$)$ $ $35,400$ $ $30,100$ $ $30,900$ $ $(25,600)$Jackson County Senior Services is a nonprofit organization devoted to providing essentlal services to senlors who Irve in thelr own

homes within the Jackson County area. Three services are provided for senlors$-$home nursing. Meals On Wheels, and housekeeping.

Data on revenue and expenses for the past year follow:

$*$Allocated on the basis of program revenues.

The head administrator of Jackson County Senlor Services, Judith Miyama, considers last year's net operating Income of $$35,400$ to

be unsatisfactory, therefore, she is considering the possibility of discontinuling the housekeeping program.

The depreclation 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 charltable organization. None of the general administrative overhead

would be avolded If the housekeeping program were dropped, but the liability insurance and the salary of the program administrator

would be avolded.

Required:

$1-$a$.$ What is the financlal advantage $($disadvantage$)$ of discontinuing the Housekeeping program?

$1-$b$.$ Based on the financlal advantage $($disadvantage$)$ of discontinulng the Housekeeping program calculated In requirement Req $1A,$

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 financlal vlability of the

varlous services?

Answer is not complete.

Complete this question by entering your answers in the tabs below.

Req $1A$

Req $1B$

Req $2$ A

Req $2$B

Prepare a properly formatted segmented income statement.