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 Bouse- Total Nursing Wheels keeping 5.927,000 $265.000 $ 407,000 $ 255,000 464.000 116.000 195.000 153,000 463,000 149,000 212,000 102,000 Revenues Variable expenses Contribution margin Fixed expenses Depreciation Liability insurance Program administrators' salaries General administrative overhead Total fixed expenses Net operating income (105) 69,700 8,800 40,500 20,400 43,800 20,700 7,800 15,300 114,400 40,500 38,800 35, 100 185,400 53,000 82.400 51.000 413,300 123,000 168,500 121,800 $ 49,700 $ 26,000 $ 43,500 $(19,800) "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 $49,700 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 If the housekeeping program were dropped, but the ability 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. Based on the financial advantage (disadvantage) of discontinuing 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 financial viability of the various services