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 $ 917,000 $ 262,000 $ 402,000 $ 253,000 Variable expenses 465,000 117,000 192,000 156,000 Contribution margin 452,000 145,000 210,000 97,000 Fixed expenses: Depreciation 70,400 9,000 40,600 20,800 Liability insurance 44,200 20,600 7,700 15,900 Program administrators salaries 116,000 40,900 38,600 36,500 General administrative overhead* 183,400 52,400 80,400 50,600 Total fixed expenses 414,000 122,900 167,300 123,800 Net operating income (loss) $ 38,000 $ 22,100 $ 42,700 $ (26,800) *Allocated on the basis of program revenues. The head administrator of Jackson County Senior Services, Judith Miyama, considers last years net operating income of $38,000 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. 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?