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 $ 928,000 $ 268,000 $ 402,000 $ 258,000 Variable expenses 472,000 112,000 204,000 156,000 Contribution margin 456,000 156,000 198,000 102,000 Fixed expenses: Depreciation 69,600 8,800 40,100 20,700 Liability insurance 44,400 20,700 7,900 15,800 Program administrators salaries 114,500 40,900 38,000 35,600 General administrative overhead* 185,600 53,600 80,400 51,600 Total fixed expenses 414,100 124,000 166,400 123,700 Net operating income (loss) $ 41,900 $ 32,000 $ 31,600 $ (21,700) *Allocated on the basis of program revenues. The head administrator of Jackson County Senior Services, Judith Miyama, considers last years net operating income of $41,900 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?

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 $928,000 $268,000 $ 402,000 $ 258,000 472,000 112,000 204,000 156,000 456,000 156,000 198,000 Revenues Variable expenses Contribution margin Fixed expenses Depreciation Liability insurance Program administrators' salaries General administrative overhead Total fixed expenses Net operating income (loss) 69,600 8,800 40,100 20,700 44,400 20,700 7,900 114,500 40,900 38,000 35,600 185,600 53,600 80,400 51,600 414,100 124,000 166,400 123,700 $ 41,900 $ 32,000 $ 31,600 $(21,700) "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 $41,900 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? Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Req 2A Req 2B Prepare a properly formatted segmented income statement. Home Nursing Meals On Wheels House- keeping Revenues Variable expenses Contribution margin Traceable fixed expenses: Depreciation Liability insurance Program administrators' salaries Total traceable fixed expenses Program segment margins General administrative overhead Net operating income (loss) Reg 13 Reg 23 > 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 th various services? Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Req 2A Req 2B What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? Req 1B > WUUU Ue dvUIULU. Required: 1-a. What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? 1-5. 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 viabil various services? Complete this question by entering your answers in the tabs below. Reg 1B Reg 1A Reg 2A Reg 2B Would a segmented income statement format be more useful to management in assessing the long-run financial viability of the various services? Yes O No Reg za