Jackson County Senlor Services is a nonprofit organization devoted to providing essentlal services to senlors who IIve in their own

homes within the Jackson County area. Three services are provided for senlors$-$home nursing. Meals On Wheels, and housekeeping.

Data on revenue and expenses for the past year follow.

$*$Allocated on the basls of program revenues.

The head administrator of Jackson County Senlor Services, Judith Miyama, considers last year's net operating income of $$48,300$ 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 thelr 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 avolded If the housekeeping program were dropped, but the liability insurance and the salary of the program administrator

would be avolded.

Required:

$1-$a$.$ What is the financial advantage $($disadvantage$)$ of discontinuing the Housekeeping program?

$1-$b$.$ Based on the financlal advantage $($disadvantage$)$ of dlscontinuing 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 financlal viability of the

varlous services?