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 $ 932,000 $ 268,000 $ 405,000 $ 259,000 Variable expenses 475,000 117,000 199,000 159,000 Contribution margin 457,000 151,000 206,000 100,000 Fixed expenses: Depreciation 69,700 8,200 40,800 20,700 Liability insurance 43,900 20,500 7,800 15,600 Program administrators salaries 114,800 40,500 38,100 36,200 General administrative overhead* 186,400 53,600 81,000 51,800 Total fixed expenses 414,800 122,800 167,700 124,300 Net operating income (loss) $ 42,200 $ 28,200 $ 38,300 $ (24,300) *Allocated on the basis of program revenues. The head administrator of Jackson County Senior Services, Judith Miyama, considers last years net operating income of $42,200 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? What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? Prepare a properly formatted segmented income statement. Total Home Nursing Meals On Wheels House-keeping Revenues Variable expenses Contribution margin 0 0 0 0 Traceable fixed expenses: Depreciation Liability insurance Program administrators salaries Total traceable fixed expenses 0 0 0 0 Program segment margins 0 $0 $0 $0 General administrative overhead Net operating income (loss) 0