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 $ 930,000 $ 270,000 Home Nursing Meals On Wheels $ 406,000 House- keeping $ 254,000 462,000 111,000 200,000 151,000 468,000 159,000 206,000 103,000 69,900 8,500 40,700 20,700 43,700 20,200 7,800 15,700 115,000 40,100 38,100 36,800 186,000 54,000 81,200 50,800 414,600 122,800 167,800 124,000 $ 53,400 $ 36,200 $ 38,200 $ (21,000) The head administrator of Jackson County Senior Services, Judith Miyama, considers last year's net operating income of $53,400 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. 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? Complete this question by entering your answers in the tabs below. Req 1A. Req 18 Req 2A Req 2B What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? Financial (disadvantage)