Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Need help with ALL required questions Jackson County Senior Services is a nonprofit organization devoted to providing essential services to seniors who live in their

image text in transcribed
Need help with ALL required questions
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, Meals On Wheels, and housekeeping, Data on revenue and expenses for the past year follow: Home Meals On House- Total Nursing Wheels keeping $934,000 $ 267,000 $409,000 $ 258,000 468,000 111,800 198,800 159,000 466,000 156,000 211,000 99,000 Revenues Variable expenses Contribution margin Fixed expenses: Depreciation Liability insurance Program administrators' salaries General administrative overheads Total fixed expenses Net operating income (loss) 69,000 43,700 8,200 20,600 40.200 7,200 20,600 15,900 186,800 53,400 1,882 51,600 413,800122,500 168, 100 123,200 $ 52,200 $ 33,500 $ 42,900 $(24,200) "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 $52.200 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. Reg 1A Req 18 Req 2A Reg 28 What is the financial advantage (disadvantage) of discontinuing the Housekeeping program

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing A Quality System For The Defense Industry

Authors: Charles B. Robinson

1st Edition

0873890787, 978-0873890786

More Books

Students also viewed these Accounting questions

Question

9. Describe the characteristics of power.

Answered: 1 week ago