Need 1a and 2a
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 seniors-home nursing, Meols On Wheels, and housekeeping. Data on revenue and expenses for the past year follow Hone Meals On Bous Revenues Variable expenses Contribution margin Pixed expenses Nursing Wheels keeping 922,000 $264,000 $404,000 $ 254,000 479,000 115,000 207,000 157,000 Depreciation 70,400 8,900 40,900 20,600 15,300 36,000 Liability insurance 43,600 20,600 7,700 115,200 40,300 38,900 184,400 2,800 80,800 Program administrators salaries General administrative overhead* Total fixed expenses Net operating income(1oss) $ 29,400 26,400 $28,700 $(25,700) 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 $29,400 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. Allocated on the basis of program revenues. administrator of Jackson County Senior Services, Judith Mliyama, considers last year's net operating income of $29,400 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? Complete this question by entering your answers in the tabs below. Req 1A Req 18 Req 2A Req 2B What is the financial advantage (disadvantage) of discontinuing the Housekeeping program
