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: Meals On House- keeping $926,000 $ 264,000 405,000 $ 257,000 154.000 103,000 Home Total Nursing Wheels Revenues Variable expenses Contribution margin Fixed expenses: 460,000 114,000 192,000 466,000 150,000 213,000 8,800 20,900 40,400 52,800 Depreciation Liability insurance Program administrators' salaries General administrative overhead* 20,800 15,700 35,600 51,400 123,500 $ 51,200 $ 27,100 $ 44,600 $ (20,500) 41,000 7,900 38,500 81,000 414,800 122,900 168,400 70,600 44,500 114,500 185,200 Total fixed expenses Net operating income (loss) 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 $51,200 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. 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 1B Req 1A Req 2A Req 2B What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? $ (20,500) Financial (disadvantage)