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 Wheelskeeping $925,000 $261,000 407,000 257,000 155,000 102,000 ts Revenues Variable expenses 472,000 118,000 199,000 453,000 143,000208,000 Contribution margin 04:01:36 Fixed expenses: Depreciation Liability insurance Program administrators' salaries General administrative overhead* 20,800 15,300 35,700 51,400 123,200 $ 40,400 21,200 40,400 (21,200) 40,200 7,600 38,400 81,400 412,600 121,800 167,600 69,600 43,500 114,500 185,000 8,600 20,600 40,400 52,200 kipped Total fixed expenses eBook Net operating income (loss) Print Allocated on the basis of program revenues. ferences The head administrator of Jackson County Senior Services, Judith Miyama, considers last year's net operating income of $40,400 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 Requirec 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