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Please answer all requiered managerial accounting questions. Jackson County Senior Services is a nonprofit organization devoted to providing essential services to seniors who live in
Please answer all requiered managerial accounting 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 seniorshome nursing, Meals On Wheels, and housekeeping. Data on revenue and expenses for the past year follow: House- Meats On Home keeping Wheels Nursing Totat 151, 199,o 119,o 469 , 103, ooo 205, 452, 40, 70, 20,200 38,700 40,300 115,600 52,600 184,200 123,700 167 , 900 122,000 413,600 $ 37,100 $ 22, $ 38,4 Revenues Variable expenses Contribution margin Fixed expenses: Depreciation Liability insurance Program administrators' salaries General administrative overhead* Total fixed expenses Net operating income (loss) *Allocated on the basis of program revenues. $ 921, $ 263,000 $ 404, 7,700 43,800 80,800 $ 254, 20, 400 15, 90 36,600 50,800 $ (20,700) The head administrator of Jackson County Senior Services, Judith Miyama, considers last year's net operating income of $38,400 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: I-a. What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? I-b. Based on the financial advantage (disadvantage) of discontinuing the Housekeeping program calculated in requirement Req IA, 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
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