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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
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, Moals on Wheels, and housekeeping. Data on revenue and expenses for the past year follow: HOOD TOTALIurii Xoeping RADE 5919,000 $262,000 5403,000 $ 254,000 Variable expensen 479,000 110,000 205,000 155,000 contribution margin 440,000 144,900 197.000 9,000 Fixed expenses Depreciation 89,900 3,690 40,400 20,900 Liability EDC 42,600 20,200 7,300 15,100 Program administrator salaries 115,900 40,900 30,300 36,700 General administrative overhead 163,000 52,400 80 600 50,800 Total Cized expensen 412.200 122, 100 166.600 123,500 Het operating income flos) $ 27,00 $ 21,900 $ 30,400 5(24,500) "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 $27,800 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 the equipment from job to job. If the program were discontinued, the von would be donated to a charitable organization None of the general administrative overhead would be avoided it the housekeeping program were dropped, but the latty insurance and the story of the program administrator would be avoided. Required: 10. What is the financial advantage disadvantage of discontinuing the Housekeeping program? 1-b. Should the Housekeeping program be discontinued? 2-0. Prepare a property formatted segmented income statement 2-6. Would a segmented income statement format be more useful to management in assessing the long-un financial viability of the various services? Camplete this question by entering your answers in the below. Reg 1A Reg 16 Reg 2 What is the financial advantage disadvantage of discontinuing the House ping program? Contribut Fixed expense: Depreciation Liability Lourance Program adattatore waardes General adestotrative ovechende Total Cixed expenses Met operating Income (los) 115,900 103,800 52,400 80 412,200 122, 100 166, 600 1.23 $ 27,00 $ 21,900 $30, 400 524,500) Allocated on the basis of program revenues The head administrator of Jackson County Senior Services, Judith Mlyama, considers last year's ne be unsatisfactory, therefore, she is considering the possibility of discontinuing the housekeeping p The depreciation in housekeeping is for a small van that is used to carry the housekeepers and the program were discontinued, the van would be donated to a charitable organization. None of the ge would be avoided if the housekeeping program were dropped, but the ability Insurance and the s would be avoided. Required: ha What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? 16. Should the Housekeeping program be discontinued? 2-a. Prepare a property formatted segmented Income staternent. 2-6. Would a segmented income statement format be more useful to management in assessing the various services? Complete this question by entering your answers in the tabs below. Req 1A Reg 1B R2A Req 28 What is the financial advantage (disadvantage of discontinuing the Housekeeping program?
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