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5 18 points Print Problem 11-19 (Algo) Dropping or Retaining a Segment [LO11-2] 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 Revenues Variable expenses Contribution margin Fixed expenses Depreciation Liability insurance Program administrators salaries General administrative overhead Total fixed expenses Net operating income tloss) Total Hone Nursing $924,000 $ 262,000 473,000 116,000 451,000 146,000 69,900 44,000 114,400 184,900 413,100 $ 37,900 8,400 20,600 40,300 52,400 121,700 Meals On Wheels $ 409,000 202,000 207,000 40,500 7,000 38,100 $1,000 168,200 $ 24,300 $ 38,000 House- keeping $253,000 155,000 98,000 21,000 15,600 36,000 50,600 123,200 $(25,200) "Allocated on the basis of program revenue The head administrator of Jackson County Senior Services, Judith Miyama, considers last year's net operating income of $37,900 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? 1b. Based on the financial advantage (disadvantage) of discontinuing the Housekeeping program calculated in requirement Reg 14, 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 i various services? 18 points Print 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 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 th various services? Complete this question by entering your answers in the tabs below. Req 1A Req 18. Reg 2A Req 28 What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? Reg 1A Req 18 Print 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. eq 18 Reg 28 Based on the financial advantage (disadvantage) of discontinuing the Housekeeping program calculated in requirement Req 1A, should the Housekeeping program be discontinued? Req 1A OYes ONO Req 2A Print Req 1A. Req 18 Revenues Variable expenses Contribution margin Traceable fixed expenses: Reg 2A Prepare a properly formatted segmented income statement. Depreciation Liability insurance Program administrators' salaries Total traceable fixed expenses Program segment margins General administrative overhead Net operating income (loss) Req 28 Total House- keeping int should the Housekeeping program be 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. Reg 1A Reg 18 Reg 2A Req 28 Would a segmented income statement format be more useful to management in assessing the long-run financial viability of the various services? OYes ONO