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 seniorshome 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	$ 921,000	$ 263,000	$ 403,000	$ 255,000
Variable expenses	475,000	119,000	205,000	151,000
Contribution margin	446,000	144,000	198,000	104,000
Fixed expenses:
Depreciation	69,700	8,300	40,500	20,900
Liability insurance	43,200	20,200	7,300	15,700
Program administrators salaries	114,400	40,500	38,800	35,100
General administrative overhead*	184,200	52,600	80,600	51,000
Total fixed expenses	411,500	121,600	167,200	122,700
Net operating income (loss)	$ 34,500	$ 22,400	$ 30,800	$ (18,700)

*Allocated on the basis of program revenues.

The head administrator of Jackson County Senior Services, Judith Miyama, considers last years net operating income of $34,500 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. 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?

You will need to create a powerpoint and an excel that explains your work and the issue itself:

1) Business/Financial Analysis Presentation (Powerpoint) a. Cover your business problem b. Explain your applied Differential Key Concept with your analysis/approach c. Walk through the solution d. Conclude with key take aways/questions/considerations you have for the business problem using the following strategic planning and change management tools. SWOT Analysis o A technique for assessing the performance, competition, risk, and potential of a business, as well as part of a business such as a product line or division, an industry, or other entity. PESTLE Analysis o Birds eye view of the whole environment from many different angles that one wants to check and keep a track of while contemplating a certain idea/plan. Change Impact Analysis o The Change Impact Matrix is a descriptive tool that details the scope of the changes that everyone involved in a project will face. The matrix is useful for presenting the project context to upper management when discussing the project status, schedule, and progress to plan.

2) Differential Problem Analysis (Excel) a. As a team please complete the work in Excel. Solve the problem in Excel in an organized layout with the data points & appropriate headers/formulas. i. You must have a Problem Info Tab with the data points from the problem ii. Each tab must represent a requirement requiring solution with tables and labeled formulas for the solution. Make sure to reference the Project Info Tab for the appropriate variables. b. Project Managers you are to input the answers into Connect from the Excel. There is only 1 attempt and no check my work references.

Complete this question by entering your answers in the tabs below. What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? Based on the financial advantage (disadvantage) of discontinuing the Housekeeping program calculated in requirement Req 1A, should the Housekeeping program be discontinued? Prepare a properlv formatted seamented income statement. Would a segmented income statement format be more useful to management in assessing the long-run financial viability of the various services