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QUESTION 3 (25 MARKS) Yaqen Sejahtera is a non-governmental organization providing services to senior citizen who lives in their own homes within Bangi and Kajang.
QUESTION 3 (25 MARKS) Yaqen Sejahtera is a non-governmental organization providing services to senior citizen who lives in their own homes within Bangi and Kajang. Three services are provided which are nursing, meal service and housckeeping. In the nursing service, nurses visit seniors on a regular basis to check on their general health and to perform tests ordered by their physicians. The meal service delivers a hot meal once a day to each senior enrolled in the program. Meanwhile the housekeeping service provides weekly house cleaning and maintenance services. Revenues allocated on the basis of program revenue percentages. The head administrator of Yaqen Sejahtera, Miss Yana is concerned about the organization's finance and considers the net operating income of RM5,000 to be very small. Last year's results were very similar to the results for previous years and are expected to be the same in the future. She feels the organization should be building its financial reserves in order to prepare for the next inevitable recession. After seeing the above revenues and expenses report, Miss Yana asked for the financial advisability of discontinuing the housekeeping service. 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 service is discontinued, the van would be donated to another charitable organization. The liability insurance and administrative salaries will be avoided if the housekeeping service is discontinued, while the administrative overhead cost will be incurred as usual. Required: a) Calculate the breakeven for each service in RM amount. (6 marks) Calculate margin of safety for each services in percentages. (6 marks) Should the housekeeping service be discontinued? Show computations to support your argument. (8 marks) Discuss THREE (3) qualitative factors that Yaqen Sejahtera should consider determining whether they should discontinue housekeeping service. (5 marks
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