Problem 13-19 (Algo) Dropping or Retaining a Segment (LO13-2] 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 (loss) "Allocated on the basis of program revenues. Total $ 929,000 483,000 446,000 Home Meals On Nursing Wheels $267,000 $ 408,000 120,000 204,000 147,000 House- keeping $ 254,000 159,000 204,000 95,000 69,200 8,200 40,300 20,700 43,700 20,900 7,200 15,600 114,300 40,300 38,100 35,900 185,800 413,000 53,400 81,600 50,800 122,800 167,200 123,000 $ 33,000 $ 24,200 $ 36,800 $ (28,000) The head administrator of Jackson County Senior Services, Judith Miyama, considers last year's net operating income of $33,000 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 chantable 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. 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? erences various services? Complete this question by entering your answers in the tabs below. Req 1A Req 18 Reg 2A Req 281 What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? Req 18 > Complete this question by entering your answers in the tabs below. Req 1A Req 18 Req 2A Reg 2B Based on the financial advantage (disadvantage) of discontinuing the Housekeeping program calculated in requirement Req 1A, should the Housekeeping program be discontinued? Yes No Req 1A Req 2A > Complete this question by entering your answers in the tabs below. Req 1A Req 18 Req 2A Req 28 Prepare a properly formatted segmented income statement. 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) Total Home Nursing Meals On House- Wheels keeping Complete this question by entering your answers in the tabs below. Req 1A Req 18 Req 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? Yes No