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 $930,000 $268,000 $409,000 $ 253,000 479,000 118,000 205,000 156,000 451,000 150,000 204,000 97,000 Revenues Variable expenses Contribution margin Fixed expenses: Depreciation Liability insurance Program administrators' salaries General administrative overhead* Total fixed expenses Net operating income (loss) 70,000 8,700 40,700 20,600 44,300 20,300 8,000 16,000 114,900 40,300 38,400 36,200 186,000 53,600 81,800 50,600 415,200 122,900 168,900 123,400 $ 35,800 $ 27,100 $ 35,100 $(26,400) *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 $35,800 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 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-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? Req 1A Req 1B Req 2A Req 2B Prepare a properly formatted segmented income statement. Total Home Nursing Meals On Wheels House- keeping Revenues Variable expenses Contribution margin Traceable fixed expenses: 0 0 0 0 Depreciation Liability insurance Program administrators' salaries Total traceable fixed expenses 0 0 0 0 Program segment margins 0 $ 0 0 $ 0 General administrative overhead Net operating income (loss) 0 Req 1A Req 1B Reg 2A Req 2B What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? Req 1A Req 1B Req 2A Req 2B Shoutu tic Reg 1A Housekeeping program be discontinued? Yes 3 No