Problem 11-19 Dropping or Retaining a Segment (LO11-21 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- Total Nursing Wheelekeeping $934, 000 $ 270,000 $400,000 $256.000 469,000 117.000 197.000 155,000 RAGS: 000 211000101, 000 Revenues Variable expenses Contribution margin Fixed expenses: Depreciation Tiability insurance Program administrators' salaries Ceneral administrative overhead Total fixed expenses Net operating income (losa) 69.000 2.500 40,300 20,200 43.400 20.200 7.700 15,500 114,300 40.10030, 600 35, 600 106, 80054, 000 01, 600 51,200 413.500 1280 168, 200122, 500 # 51, 500 30,200 $ 42,800 6(21,500) "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 $51,500 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 if the housekeeping program were dropped, but the liability insurance and the salary of the program administrator would be avoided Required: 1-0. What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? 1-b. 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. -Regia N Red Req ZA Reg 26 What is the financial advantage (disadvantage) of discontinuing the Housekeeping program Resin Reg 10 >