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Jackson County Senlor Services is a nonprofit organlzation devoted to providing essentlal services to senlors who IIve in their own homes within the Jackson County
Jackson County Senlor Services is a nonprofit organlzation 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 adminlstrator of Jackson County Senlor Services, Judith Mlyama, considers last year's net operating Income of $47,300 to be unsatisfactory; therefore, she is considering the possibility of discontinuing the housekeeping program. The depreclation 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 charltable organization. None of the general administratlve overhead would be avolded if the housekeeping program were dropped, but the llability Insurance and the salary of the program administrator would be avolded. Required: 1-a. What Is the financlal advantage (disadvantage) of discontinulng the Housekeepling 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 financlal vlability of the varlous services? Complete this question by entering your answers in the tabs below. Prepare a properly formatted segmented income statement
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