Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please answer all 4, thank you! 1 Jackson County Senior Services is a nonprofit organization devoted to providing essential services to seniors who live in
please answer all 4, thank you!
1 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: Print Meals House- Home On Total Nursing Wheele keeping Revenues $927,000 $269,000 $400,000 $ 258,000 Variable expenses 477,000 117,000 205,000 155,000 Contribution margin 450,000 152,000 195,000 103,000 Fixed expenses Depreciation 69, 700 8,800 40,400 20, 500 Liability insurance 43,300 20,200 7,300 15,800 Program administrators' 115,500 40,600 salaries 38,400 36,500 General administrative 185,400 53,800 80,000 51,600 overhead Total fixed expenses 413,900 123,400 166,100 124,400 Net operating income $ 36,100 $ 28,600 $ 28,900 $121,400) (los) '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 $36,100 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? 1-6. Should the Housekeeping program be discontinued? 2-a. Prepare a properly formatted segmented Income statement 2-6. 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. Total Reg 1A Reg 1B Req 2A Req 2B Prepare a properly formatted segmented income statement Home Meals On House- Nursing Wheels keeping Revenues Variable expenses Contribution margin Traceable fixed expenses: Depreciation Liability insurance Program administrators! salaries Total traceable fixed expenses Program segment margins General administrative overhead Net operating income (loss) Req 1B Req 2B >Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started