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 $ 924,000 $ 265,000 $ 400,000 $ 259,000 473,000 115,000 207,000 151,000 451,000 150,000 193,000 108,000 Revenues Variable expenses Contribution margin Fixed expenses: Depreciation Liability insurance Program administrators' salaries General administrative overhead Total fixed expenses Net operating income (loss) 69,200 43,800 115,400 184,800 413,200 37,800 8,400 20,100 40,900 53,000 122,400 27,600 40,200 20,600 7,800 15,900 38,200 36,300 80,000 51,800 166,200 124,600 26,800 $(16,600) $ $ $ *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 $37,800 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. 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? What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? Prepare a properly formatted segmented income statement. Total Home Nursing Meals On Wheels House- keeping 00 D 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) 0 $ 0 $