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 seniorshome nursing, Meals On Wheels, and housekeeping. Data on revenue and expenses for the past year follow: Total Home Nursing Meals On Wheels House-keeping Revenues $ 928,000 $ 269,000 $ 402,000 $ 257,000 Variable expenses 463,000 114,000 191,000 158,000 Contribution margin 465,000 155,000 211,000 99,000 Fixed expenses: Depreciation 70,700 9,000 40,800 20,900 Liability insurance 43,700 20,800 7,400 15,500 Program administrators salaries 115,000 40,100 38,600 36,300 General administrative overhead* 185,600 53,800 80,400 51,400 Total fixed expenses 415,000 123,700 167,200 124,100 Net operating income (loss) $ 50,000 $ 31,300 $ 43,800 $ (25,100) *Allocated on the basis of program revenues. The head administrator of Jackson County Senior Services, Judith Miyama, considers last years net operating income of $50,000 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. Based on the financial advantage (disadvantage) of discontinuing the Housekeeping program calculated in requirement Req 1A, 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 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) Req 1B