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: Home Meals On House- Total Nursing Wheels keeping $ 922,000 $ 263,000 $ 401,000 $ 258,000 459,000 111,000 195,000 153,000 463,000 152,000 206,000 105,000 Revenues Variable expenses Contribution margin Fixed expenses: Depreciation Liability insurance Program administrators' salaries General administrative overhead* Total fixed expenses Net operating income (loss) 69,700 8,200 40,800 20,700 43,200 20,300 7,400 15,500 114,800 40,600 38,100 36,100 184,400 52,600 80,200 51,600 412,100 121,700 166,500 123,900 $ 50,900 $ 30,300 $ 39,500 $(18,900) *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 $50,900 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. Req 1A Req 1B Req 2A Reg 2B 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 0 0 0 0 Contribution margin Traceable fixed expenses: Depreciation Liability insurance Program administrators' salaries Total traceable fixed expenses O 0 0 0 0 0 $ 0 $ 0 Program segment margins General administrative overhead Net operating income (loss) 0