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 $ 930,000 $ 264,000 $ 409,000 $ 257,000 Variable expenses 472,000 111,000 201,000 160,000 Contribution margin 458,000 153,000 208,000 97,000 Fixed expenses: Depreciation 69,900 8,600 40,700 20,600 Liability insurance 43,800 20,100 8,000 15,700 Program administrators salaries 114,500 40,800 38,000 35,700 General administrative overhead* 186,000 52,800 81,800 51,400 Total fixed expenses 414,200 122,300 168,500 123,400 Net operating income (loss) $ 43,800 $ 30,700 $ 39,500 $ (26,400) *Allocated on the basis of program revenues. The head administrator of Jackson County Senior Services, Judith Miyama, considers last years net operating income of $43,800 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?