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 Total $.921,000 474,000 147,000 Home Nursing $261,000 114,000 147.000 Heals on Wheels Housekeeping $ 404,000 $ 256,000 202.000 158,00 202,000 95,000 Revenues Variable expenses Contribution sang Fived expenses Depreciation ability insurance For administrator salaries General administrative overhead Total fixed Net operating Inc (less) 68,000 4),400 114,500 184,200 411,90 $ 16,000 3.100 20,30 10,400 53,200 121 000 5 26,000 40,5 7,100 11,000 10.00 157.100 14,00 20,30 15,100 36,100 51,200 13200 "Allocated on the basis of program revenues The head administrator of Jackson County Senior Services, Judith Miyama, considers tast year's net operating income of $6,000 to be satisfactory, therefore, she is considering the possibility of discontinuing the housekeeping program The depreciation in housekeeping is for a small van that is used to conty 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 wided at the housekeeping program were dropped, but the liability Insurance and the salary of the program administrator would be avoided Required: 1a Wat is the financial advantage (disadvantage) of discontinuing the Housekeeping program? Required: 1-a. What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? 1-6. Based on the financial advantage (disadvantage) of discontinuing the Housekeeping program calculated in requirement Reg 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. Reg 1A Req 18 Reg 2A Reg 28 What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? Ron Req 18 >