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 $ 262,000 $ 407,000 $ 259,000 Variable expenses 462,000 114,000 193,000 155,000 Contribution margin 466,000 148,000 214,000 104,000 Fixed expenses: Depreciation 69,100 8,100 40,500 20,500 Liability insurance 42,900 20,200 7,300 15,400 Program administrators salaries 113,300 40,000 38,200 35,100 General administrative overhead* 185,600 52,400 81,400 51,800 Total fixed expenses 410,900 120,700 167,400 122,800 Net operating income (loss) $ 55,100 $ 27,300 $ 46,600 $ (18,800) *Allocated on the basis of program revenues. The head administrator of Jackson County Senior Services, Judith Miyama, considers last years net operating income of $55,100 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?