Problem 12-19 Dropping or Retaining a Segment (L012-2] 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 Meals On House- Total Nursing Wheels keeping $921,000 $263,000 $408,000 $ 250,000 461,000 120,000 190,000 151,000 460,000 143,000 218,000 99,000 Revenues Variable expenses Contribution margin Fixed expenses : Depreciation Liability insurance Program administrators salaries General administrative overhead Total fixed expenses Net operating income (105) 69,800 8,100 40,900 20,800 44,200 20,300 8,000 15,900 115,400 40,600 38,100 36,700 184,200 52,600 81,600 50,000 413,600 121,600 168,600 123,400 $ 46,400 $ 21,400 $ 49,400 $(24,400) *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 $46,400 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? 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 table TA