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please answer questions 1-2b. Jackson County Senior Services is a nonprofit organization devoted to providing essential services to seniors who live in their own homes

please answer questions 1-2b.

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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 Revenues $ 917, 000 $ 265, 000 $ 400, 000 $ 252,000 variable expenses 475,000 120, 000 198,000 157,000 Contribution margin 442,000 145,000 202,000 95,000 Fixed expenses: Depreciation 70, 400 8, 800 40, 600 21,000 Liability insurance 43, 800 20,500 7,900 15, 400 Program administrators' salaries 114,000 40, 300 38, 400 35,300 General administrative overhead* 183, 400 53,000 80, 000 50, 400 Total fixed expenses 411, 600 122, 600 166,900 122 , 100 Net operating income (loss) $ 30, 400 $ 22, 400 $ 35, 100 $(27, 100) `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 $30,400 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. 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 viability of the various services? Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2A Req 28 What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? Req 1A Req 1B >Req 1A Req 18 Reg 2A Req 28 Based on the financial advantage (disadvantage) of discontinuing the Housekeeping program calculated in requirement Req 1A, should the Housekeeping program be discontinued? Yes No

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