Save & Exit Submit Check my work Problem 12-19 Dropping or Retaining a Segment [LO12-2] 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 $ 925,000 $ 267,000 $ 401,000 $257,000 478,000 119,000 208,000 151,000 447,000 148,000 193,000 106,000 Revenues Variable expenses Contribution margin Fixed expenses! Depreciation Liability insurance Program administrators' salaries General administrative overhead Total fixed expenses Net operating income (loss) 69,8008,30040,800 20,700 44,4002 0,700 7,900 15,800 115,700 40,900 38,200 36,600 185,000 53,40080, 20051,400 414,900 123,300 167, 100 124,500 $ 32,100 $ 24,700 $ 25,900 $(18,500) "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 $32.100 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. Connect - To Do Assign work Saved Help Save & Exit Sul Check my wo from job to job. If the program were discontinued, the van would be donated to a charitable organization. None the general administrative overhead would be avoided if the housekeeping program were dropped, but the liab 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 tabs below. Req 1A Reg 1B Req 2A Req 28 What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? Req13 > JUUUU USLUSENCUP PILIU DE USLUNICITUGUL 2-a. Prepare a properly formatted segmented income statement. 2-b. Would a segmented income statement format be more useful to management in assessing financial viability of the various services? Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Reg 2A Reg 28 Prepare a properly formatted segmented income statement. Meals on Total Home Nursing whe Revenues Variable expenses Contribution margin hargin Traceable fixed expenses: Depreciation Liability insurance Program administrators' salaries Total traceable fixed expenses . mm