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 Revenues Variable expenses Contribution margin Fixed expenses Depreciation Liability Insurance Program administrators' salaries General administrative overhead Total Fixed expenses Net operating income (loss) Home Meals on House Total Wheels keeping 5924,000 5 265,000 $ 402,000 $ 259.000 470,000 110.000 160,000 455.000 153,000 202.000 99.000 69,800 3,700 40,200 20,900 43,100 20.500 7,300 15,300 115,600 40,100 38,600 36,900 154,100 52,600 51,00 121.900 166,500 124.900 $ 40,700 $31,100 $35,500 5(25,900) "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 $40,700 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 ability 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 1-6. Should the Housekeeping program be discontinued? 2-a Prepare a properly formatted segmented income statement 2-5. 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. Reg 1A Reg 10 Reg 2A Req 20 what is the financial advantage (disadvantage) of discontinuing the Housekeeping program? Req 18 > O 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 2009 Revenues Variable expenses Contribution margin Fixed expenses Depreciation Liability Insurance Program administrators salaries General administrative overhead Total fixed expenses Het operating Income (los) Meals on House- Total Nursing Wheels keeping $924.000 $ 263,800 $ 402,000 5 259.000 470.000 110,000 200,000 160.000 203,000 99.000 69,000 8,700 40.200 20,900 20,50 7.300 15,380 115,600 40,100 16,900 184,500 50,400 51,00 41300 121,900 166, 500 126.900 $ 40,700 $ 31,100 $ 35,500 $(25,900) "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 $40,700 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? 1-6. 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. Reg 1A Reg 1 Red 2A Reg 28 Should the Housekeeping program be discontinued? Yes ONO "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 $40,700 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. 2-6. 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. Reg 1A Req 18 Reg 2A Reg 2B Prepare a properly formatted segmented income statement. Total 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) 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 keping 5924.000 $ 263,000 5 402,000 $ 259,000 470.000 110,000 200.000 160.000 454,00 153,000 202.000 99.000 Revenues Variable expenses Contribution margin Fixed expenses Depreciation Liability Insurance Program administrators salaries General administrative overhead Total fixed expenses Net operating Incone (less) 59,500 3,700 40,200 20.900 43,100 20,500 7.300 15,300 115.640 40,100 38,600 36,900 184,800 52,600 80,400 51,500 411,300 121,900 166,500 124,900 $ 40,700$ 31,100 S35,500 5(25,900) "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 $40,700 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 ability insurance and the salary of the program administrator would be avoided Required: 15. What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? 16. 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. Reg 1A Reg 18 Reg 2A Reg 28 Would a segmented income statement format be more useful to management in assessing the long run financial viability of the various services Yes NO