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: House keeping 404,000 259,000 160,000 Meals On Home Nursing Wheels Total $926,000 263,000 $ 473,000 453,000 Revenues Variable expenses 112,000 201,000 Contribution margin Fixed expenses: Depreciation Liability insurance Program administrators 151,000 203,000 99,000 8,700 20,200 20,500 15,900 69,900 43,700 40,700 7,600 35,100 113,600 40, 200 38,300 salaries General administrative 51,800 52,600 185,200 80,800 overhead Total fixed expenses 412,400 121,700 167,400 123,300 35,600 $(24,300) 40,600 $ Net operating income (loss) 29,300 $ *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 $40,600 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. Req 2A Req 2B Req 1A Req 1B What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? Req 1A Req 2B Req 1B Req 2A Prepare a properly formatted segmented income statement. Meals On Wheels House- Home Nursing Total keeping Revenues Wariable 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)