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: Meals House- Home On Total Nursing keeping Wheels $919,000 $266,000 $401,000 $ 252,000 470,000 118,000 198,000 154,000 449,000 148,000 203,000 98,000 Revenues Variable expenses Contribution margin Fixed expenses: Depreciation Liability insurance Program administrators' salaries General administrative overhead* Total fixed expenses Net operating income (loss) 69,600 43,300 115,500 8,700 20,500 41,000 40,400 7,300 38,800 20,500 15,500 35,700 183,800 53,200 80,200 50,400 412,200 123,400 166,700 122, 100 $ 36,800 $ 24,600 $ 36,300 $(24, 100) *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 $36,800 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? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2A Req 2B Prepare a properly formatted segmented income statement. Revenues Meals Total Home House- On Nursing Wheels keeping $ $ $ $ 266,000 401,000 252,000 919,000 118,000X198,000X154,000x470,000 148,000 203,000 98,000 449,000 8,700X 20,500X 41,000x 40,400 7,300 38,800 20,500 69,600X 15,500X 43,400X 35,700X228,400X 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) 70,200 86,500 71,700 341,400 77,800 $ 26,300 $ 107,600 116,500 183,800 (106,000)