Total $919,000 $ 477,000 442,000 Home Nursing 264,000 $ 117,000 147,000 Meals On House- Wheels keeping 404,000 $ 251,000 210,000 150,000 194,000 101,000 Revenues Variable expenses Contribution margin Fixed expenses: Depreciation Liability insurance Program administrators' salaries General administrative overhead* Total fixed expenses Net operating income (loss) 69,100 42,600 115,100 8,300 20,200 40,000 40,600 7,100 38,700 20,200 15,300 36,400 52,800 183,800 410,600 $ 31,400 $ 121,300 25,700 $ 80,800 50,200 167,200 122,100 26,800 $(21,100) *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 $31,400 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. Reg 1A Req 1B Req 2A Req 2B What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? Financial (disadvantage) Req 1A Req 1B Req 2A Req 2B Prepare a properly formatted segmented income statement. Total Home Nursing Meals On Wheels House- keeping : 0 0 0 0 Revenues Variable expenses Contribution margin Traceable fixed expenses: Depreciation Liability insurance Program administrators' salaries Total traceable fixed expenses 000 0 $ 0 $ 0 $ 0 Program segment margins General administrative overhead Net operating income (loss)