meals ULI u. Total Nursing Wheels keeping $ 927,000 $ 265,000 $ 406,000 $ 256,000 465,000 112,000 198,000 155,000 462,000 153,000 208,000 101,000 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 8,100 40,900 20,600 43,100 20,300 7,300 15,500 114,200 40,400 38,100 35,700 185,400 53,000 81,200 51,200 412,300 121,800 167,500 123,000 $ 49,700 $ 31,200 $ 40,500 $(22,000) *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 $49,700 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