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. Revenues Variable expenses Contribution margin Fixed expenses: Depreciation Liability insurance Program administrators' salaries General administrative overhead* Total fixed expenses Net operating income (loss) *Allocated on the basis of program revenues. Total Home Nursing $ 930,000 470,000 460,000 $ 270,000 115,000 155,000 Meals On Wheels $ 408,000 196,000 212,000 House- keeping $ 252,000 159,000 93,000 69,800 8,900 40,500 20,400 43,000 20,200 7,700 15,100 114,200 40,100 38,600 35,500 186,000 54,000 81,600 50,400 413,000 123,200 168,400 121,400 $ 47,000 $ 31,800 $ 43,600 $ (28,400) The head administrator of Jackson County Senior Services, Judith Miyama, considers last year's net operating Income of $47,000 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. 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?