Saved Help Save & Exit Week 13 Homework Check my 1 1 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: 5 points Revenues Variable expenses Contribution margin Wised expen! Depreciation 1.Lability insurance Program intrator salaries Coneral administrative overheid Total fixed expenses Het operating income (los) Home Meals On House- total Nursing Wheels Keeping 5 927,000 $365,000 $402,000 5 260,000 482,000 113.000 210,000 159,000 445.000 152.000 192,000 101,000 70,300 0.900 40,500 20.600 43,500 20.100 7.600 15,800 115,900 40,600 38,300 37,000 105,000 51.000 10,400 52,000 415 100 128,600 161100 125,000 $ 29,900 $ 29,400 $ 24,900 $(24,400) "Allocated on the basis of program revenues The head administrator of Jackson County Senior Services, Judith Miyamo, considers last year's net operating income of $29.900 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 it the housekeeping program were dropped, but the ability Insurance and the salary of the program administrator Required: 1-0 What is the financial advantage (disadvantage of discontinuing the Housekeeping program? 16. Based on the financial advantage (disadvantage of discontinuing the Housekeeping program calculated in requirement Req1A, should the Housekeeping program be discontinued? 2-a. Prepare a properly formatted segmented income statement 2-6 Would a segmented income statement format be more useful to management in assessing the long-run financial viability of the various services? ME Graw Hall Prey 1 of 3 Next > Saved Help Save & Exit Week 13 Homework Check my 1 1 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: 5 points Revenues Variable expenses Contribution margin Wised expen! Depreciation 1.Lability insurance Program intrator salaries Coneral administrative overheid Total fixed expenses Het operating income (los) Home Meals On House- total Nursing Wheels Keeping 5 927,000 $365,000 $402,000 5 260,000 482,000 113.000 210,000 159,000 445.000 152.000 192,000 101,000 70,300 0.900 40,500 20.600 43,500 20.100 7.600 15,800 115,900 40,600 38,300 37,000 105,000 51.000 10,400 52,000 415 100 128,600 161100 125,000 $ 29,900 $ 29,400 $ 24,900 $(24,400) "Allocated on the basis of program revenues The head administrator of Jackson County Senior Services, Judith Miyamo, considers last year's net operating income of $29.900 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 it the housekeeping program were dropped, but the ability Insurance and the salary of the program administrator Required: 1-0 What is the financial advantage (disadvantage of discontinuing the Housekeeping program? 16. Based on the financial advantage (disadvantage of discontinuing the Housekeeping program calculated in requirement Req1A, should the Housekeeping program be discontinued? 2-a. Prepare a properly formatted segmented income statement 2-6 Would a segmented income statement format be more useful to management in assessing the long-run financial viability of the various services? ME Graw Hall Prey 1 of 3 Next >
