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 $926,000 $267,000 $402,000 $257,000 482,000 119,000 204,000 159,000 Revenues Variable expenses Contribution margin 444,000 148.000 198,000 98.000 Fixed expenses: Depreciation Liability Insurance Program administrators salaries General administrative overhead 69,700 43,900 115,300 8,500 40,300 20,900 7,300 40,9003 8,100 20.900 15,700 36,300 185,200 53,400 80,400 51,400 Total fixed expenses 414,100 123,700 166,100 124,300 Net operating Income (loss) $29.900 $ 24300 $ 31,900 $ 26,300) "Allocated on the basis of program revenues. The head administrator of Jackson County Senior Services, Judith Miyama, is concerned about the organization's finances and considers the $29,900 last year to be razor-thin. (Last year's results were very similar to the results for previous years and are representative of what would be expected in the future.) She feels that the organization should be building its financial reserves at a more rapid rate in order to prepare for the next Inevitable recession. After seeing the above report, Ms. Miyama asked for more information about the financial advisability of perhaps discontinuing the housekeeping program. The depreciation In housekeeping is for a small van that is used to carry the 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 impact on net operating Income by discontinuing housekeeping program? 2-b. Would a segmented Income statement format be more useful to management in assessing the long-run financial viability of the various services. Yes NO 2-b. Would a segmented Income statement format be more useful to management in assessing the long-run financial viability of the various services. Yes NO