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Problem 13-19 (Algo) Dropping or Retaining a Segment [LO13-2] Jackson County Senior Services is a nonprofit organization devoted to providing essential services to seniors who IIve 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: *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 $25,100 to be unsatisfactory; therefore, she is considering the possibility of discontinuing the housekeeping program. The depreclation 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 Ilability 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. Based on the financial advantage (disadvantage) of discontinuing the Housekeeping program calculated in requirement Req 1A, 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 vlability of the various services? Complete this question by entering your answers in the tabs below. What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? Problem 13-19 (Algo) Dropping or Retaining a Segment [LO13-2] Jackson County Senlor Services is a nonprofit organization devoted to providing essential services to senlors who Iive in their own homes within the Jackson County area. Three services are provided for senlors-home nursing, Meals On Wheels, and housekeeping. Data on revenue and expenses for the past year follow: *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 $25,100 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 llability Insurance and the salary of the program administrator would be avolded. Required: 1-a. What is the financlal advantage (disadvantage) of discontinuing the Housekeeping program? 1-b. Based on the financlal advantage (disadvantage) of discontinuing the Housekeeping program calculated In requirement Req 1A, 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 financlal vlability of the varlous services? Complete this question by entering your answers in the tabs below. Based on the financial advantage (disadvantage) of discontinuing the Housekeeping program calculated in requirement Req 1A, should the Housekeeping program be discontinued? Complete this question by entering your answers in the tabs below. Prepare a properly formatted segmented income statement. Data on revenue and expenses for the past year follow: 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 $25, 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 charltable organization. None of the general administrative overhead would be avolded If the housekeeping program were dropped, but the liability Insurance and the salary of the program administrator would be avolded. Requlred: 1-a. What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? 1-b. Based on the financlal advantage (disadvantage) of discontinuing the Housekeeping program calculated In requirement Req 1A, 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 varlous services? Complete this question by entering your answers in the tabs below. Would a segmented income statement format be more useful to management in assessing the long-run financial viability of the various services
