Problem 11-19 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. Home Heals on Houte Total Nursing Wheels keeping 5932,000 5 270,000 $405,000 5 257,000 478,000 117,000 202,600 159,000 454,000 153,000 283,000 98, Revenues Variable expenses Contribution margin Fixed expenses Depreciation Liability Insurance Program administrators salaries Generalinistrative overhead Total fixed expenses Niet operating income (less) 68,900 8,100 4,200 20,600 43.800 20.500 7,00 16,000 114,400 40,900 38,400 35, 100 186400 540,000 $1,000 51,400 413.500 123.500 166.900 123.100 $ 40,500 $ 29,500 536,100 $(25,100) "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 $40,500 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 at the housekeeping program were dropped, but the fiability insurance and the salary of the program administrator would be avoided Complete this question by entering your answers in the tabs below. Req 1A Weg 1B Reg 2A Reg 28 Should the Housekeeping program be discontinued? Yes ONO Reg 1A Reg 1B Req 2A Req 2B Prepare a property formatted segmented income statement. Total Home Nursing Meals On Wheels House keeping 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) Complete this question by entering your answers in the tabs below. Req 1A Req 18 Req 2A Reg 28 Reg 2B Would a segmented income statement format be more cerul to management in assessing the long-run financial viability of the various services? Yes ONO