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 $931,000 $267,000 $ 405,000 $ 259,000 465,000 113,000 200,000 152,000 466,000 154,000 205,000 107,000 Revenues Variable expenses Contribution margin Fixed expenses: Depreciation Liability insurance Program administrators' salaries General administrative overheads Total fixed expenses Net operating income (loss) 69,200 8,500 40,100 20,600 43,30020,300 7,600 15,400 115,900 40,800 38,900 36,200 186,200 53,400 81,000 51,800 414,600 123,000 167,600 124,000 $ 51,400 $ 31,000 $ 37,400 $(17,000) "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 $51,400 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: points The head administrator of Jackson County Senior Services, Judith Miyama, considers last year's net operating income of $51,400 to be unsatisfactory, therefore, she is considering the possibility of discontinuing the housekeeping program. eBook Print 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. References Required: I-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. Reg 1A Reg 13 Reg 2A Reg 28 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-ru viability of the various services? Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2A Reg 2B What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? RAGA Reg 1B > 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 financiar viability of the various services? Complete this question by entering your answers in the tabs below. Req 1A Reg 16 Req 2A Req 2B Should the Housekeeping program be discontinued? OYes ONO ( Reg 1A Reg 2A > Req 1A Req 1B Req 2A Req 2B Prepare a properly formatted segmented income statement. Total Home Nursing Meals On Wheels House- keeping Revenues Variable expenses Contribution margin Traceable fixed expenses: Depreciation Liability insurance Program administrators' salaries Total traceable fixed expenses Program segment margins General administrative overhead Net operating income (loss) Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2A Reg 2B Would a segmented income statement format be more useful to management in assessing the long-ru the various services? Yes No
