Jackson County Senior Services is a nonprofit organization devoted to providing essential services to seniors who live in their own homes within the Jackton 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 uring wheels keeping 1933,000 $267.000 40.0 8 357.000 Variable 485.000 Cau 11.10 195.000 151001 1000 Find expert Decciati 19.100 8.400 40.00 2010 L Lace 44.500 20,100 7.300 Program i salaries 10. 200 111. 15,700 38.200 35.450 deneta were 188.400 51-400 UOD 11.400 Total and expenses STRO tetepertinti 351.210 32.780 1.100 323.2001 Alocated on the basis of program revenues The head administrator of Jackson County Senior Services, Judith Miyama, considers last year's net operating income of $51.200 to be unsatisfactory, therefore, she is considering the possibility of discontinuing the housekeeping program The depreciation in housekeeping is for a small von 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 the housekeeping program were dropped, but the ability insurance and the salary of the program administrator would be avoided Required: a. What is the financial advantage disadvantage of discontinuing the Housekeeping program? 1. Should the Housekeeping program be discontinued? 2-a Prepare a properly formatted segmented income statement 2. 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. Red 2A What is the financial advertage (disadvantage of discontinuing the Housekeeping program? Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Reg 2A Reg 28 Should the Housekeeping program be discontinued? Yes NO Required: 1. What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? ub. 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? Complete this question by entering your answers in the tabs below. Reg 1A Regis Red 2A Reg 28 Prepare a property Formatted segmented income statement. Total Home Nursing Meals On Wheels House keeping Revenues Variable expenses Contribution margin Traceable fred expenses Depreciation by insurance Program administrator salaries Total treated expenses Program segment margins Generatie overhead Net operating income would be avoided 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-b. 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? Complete this question by entering your answers in the tabs below. Red 1A Req 18 Req 2A Reg 28 Would a segmented income statement format be more useful to management in assessing the long-run financial viability of the various services? Yes No
