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please help me fix the errors Jackson County Senior Services is a nonprofit organization devoted to providing essential services to seniors who live in their
please help me fix the errors
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- Wheels keeping $923,000 $ 261,000 $ 405,000 $ 257,000 473,000 116,000 201,000 156,000 Total Nursing Revenues Variable expenses Contribution margin Fixed expenses 450,000 145,000 204,000 101,000 69,200 43,800 20,800 8,300 Depreciation Liability insurance Program administrators' salaries 114,400 40,100 38,200 36,100 General administrative overhead 184,600 52,200 81,000 51,400 40,400 20,500 15,400 7,600 Total fixed expenses Net operating income (loss) Allocated on the basis of program revenues 412,000 121,400 167,200 123,400 $ 38,000 $ 23,600 S 36,800 S (22,400) The head administrator of Jackson County Senior Services, Judith Miyama, is concerned about the organization's finances and considers the net operating income of $38,000 last year to be razor-thin. (Last year's results were expected in the future.) She feels that the organization should be building its financial reserves at a more rapid rate in order to prepare for the next inevitable recession. After seeing the above report, Ms. Miyama asked for more information about the financial advisability of perhaps discontinuing the housekeeping program very similar to the results fo r previous years and are representative of what would be The depreciation in housekeeping is for a small van that is used to carry the housekeepers and thein 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 impact on net operating income by discontinuing housekeeping program? (Decreases should be indicated by a minus sign.)Step by Step Solution
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