Please need all of them, thank you
Problem 10-19A Dropping or Retaining a Segment [LO10-21 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- NursingWheels keeping $ 923,000 $ 268,000 $ 401,000 $ 254,000 468,000 113,000 202,000 153,000 Total Revenues Variable expenses Contribution margin Fixed expenses: 455,000 155,000 199,000101,000 Depreciation Liability insurance Program administrators' salaries General administrative overhead 184,600 8,500 43,800 20,800 114,000 40,100 53,600 69,700 20,400 15,400 38,400 35,500 80,200 50,800 40,800 7,600 Total fixed expenses 412,100 123,000 167,000 122,100 $ 42,900 $ 32,000 $ 32,000 $ (21,100) Net operating income (loss) Allocated on the basis of program revenues. The head administrator of Jackson County Senior Services, Judith Miyama, is concerned about the organization's finances and considers the net operating income of $42,900 last year to be razor-thin. (Last year's results were very similar to the results for previous years and are representative of what would be 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 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 Required: 1-a. What is the impact on net operating income by discontinuing housekeeping program? (Decreases should be indicated by a minus sign.) Difference: Net Operating Total If Housekeeping Income Increase Is Dropped or (Decrease) Current Total $923,000 Revenues Variable expenses Contribution margin Fixed expenses: 923,000 Depreciation Liability insurance Program administrators' salaries General administrative overhead Total fixed expenses 0 $ 923,000 Net operating income (loss) 1-b. Should the housekeeping program be discontinued? Yes No 2-a. Prepare a segmented income statement Home Nursing Meals On Wheels House keeping Totals 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) 2-b. Would a segmented income statement format be more useful to management in assessing the long- run financial viability of the various services Yes No
