Question 1 Dropping or Retaining a Segment Cumberfand County Senior Services is a non-proft organization devoted to providing essential services to seniors who live in their own homes within the Cumbertand County area. Three services are peovided for seniors - home nursing. Meals on Wheels, and housekeeping, in the home nunsing program, nurses visit seniors on a regular basis to check on their general health and to perform tests ondered by their physicians. The Meals on Wheels program delivers a hot meal once a day to each senicr enrolled in the program. The housekeeping service provides weekly hourecleaning and mainlenance services. Data on revenue and expenses for the past year follow: 'Allocated on the basis of program revenues. The hesd administranor of Cumberand County Senior Services. Judith Ewa, is concerned about the organization's finances and considen the operaling inceme of $6,400 last year to be razor-thin. (Last year's results were very similar lo the results for previous years and ave representative of what would be expected in the future.) She feels that the orgarization should be buliding its financiat reserves at a more rapid rate in order to prepare for the rext inevitable recession. Ather seeing the above report, Ewa asknd for more information about the financial advisability of discontinuing the housekeeping program. The depreciation in the housekeeping calegory is for a smalt van that is used to carry the housekeepers and their equipment from job io job. If the program were discontinued, the van wodid be donated to a charitable organization. Depreciation charges assume zero salvage value. None of the general administrative overthead would be avoided if the hourekeeping program were drosput. but the labitily insurance and the salary of the program administrater would be avoided. Beduifement t: BS Maris) Prepare a segmented income statement that clearly shows traceable fived expenses, segment margins and the total revenues and expenses for the company. Bequirement 2- (to Moros) Compute the change in net operating income for the company as a whole if housekeeping progam is discontinued? 8cavirement 3: (5 Merky) Should the housekeeping program be discontinued