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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. Total Home Meals On House- Nursing Wheels keeping Revenues $926,298 5 265,000 $403,200 $ 258,000 Variable expenses 483,008 117,888 288,000 158,000 Contribution margin 443,880 148,000 195, aee 100,000 Fixed expenses Depreciation 69,800 8,300 40,900 20,600 Liability insurance 43,900 20,900 7,600 15,400 Program administrators salaries 115,100 40,600 38,600 35,900 General administrative overheade 185,200 53,000 80.600 51,600 Total fixed expenses 414,00 122,800 167,700 123,500 Net operating income (los) $ 29,800 $ 25,200 $ 27,300 $123,500) "Allocated on the basis of program revenues. The head administrator of Jackson County Senior Services, Judith Miyamo, considers last year's net operating income of $29,000 to be unsatisfactory, therefore, she is considering the possibility of discontinuing the housekeeping program. The depreciation in housekeeping is for a smail 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 lability 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. Reg 1 Reg 18 Red 2A Rea 28 What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? Roq 18 )

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