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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

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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: Home Meals On House- Total Nursing Wheels keeping $932,000 $ 270,000 $ 409,000 $ 253,000 474,000 116,000 205,000 153,000 458,000 154,000 204,000 100,000 Revenues Variable expenses Contribution margin Fixed expensesi Depreciation Liability insurance Program administrators' salaries General administrative overhead Total fixed expenses Net operating income (loss) 69,400 8,800 40,500 20,100 43.400 20.500 7.700 15,200 115,300 41,000 38,200 36,100 186,400 54,000 81,800 5 0, 600 414,500 124,300 168,200 122,000 $ 43,500 $ 29,700 $ 35,800 $(22,000) "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 $43.500 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 lob to lob. 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

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