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: Meals On Wheels ome Nursing $900,000 $260,000 $400,000 240,000 120,000 140,000 House- Total keeping Revenues Variable expenses Contribution margin Fixed expenses: Depreciation Liability insurance Program administrators' salaries General administrative overhead* Total fixed expenses Net operating income (loss) 490,000 410,000 210,000 190,000 160,000 80,000 68,000 42,000 115,000 180,000 405,000 40,e00 7,000 38,000 80,000 8,000 20,000 40,000 52,000 120,000 $ 5,000 $ 20,000 25,000 $(40,000) 20,000 15,000 37,000 48,000 120,000 165,000 "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 $5,000 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? Answer is not complete. Complete this question by entering your answers in the tabs below. Req 2A Req 28 Req 1A Req 18 What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? Financial (disadvantage) Req 1B> Req 1A