Total $ 923, 000 466,000 457,000 Home Meals On Nursing Wheels $ 267,000 $ 402,000 112,000 202,000 155,000 200,000 House- keeping $ 254, 000 152,000 102,000 Revenues Variable expenses Contribution margin Fixed expenses: Depreciation Liability insurance Program administrators' salaries General administrative overhead* Total fixed expenses Net operating income (loss) 69, 800 43, 600 116, 300 184, 600 414, 300 42, 700 8, 400 20, 700 40,500 53, 400 123, 000 32,000 40, 500 7,200 38, 800 80, 400 166, 900 33, 100 20, 900 15, 700 37,000 50, 800 124, 400 $ (22,400) $ $ $ *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 $42,700 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. 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 2B What is the financial advantage (disadvantage) of discontinuing the Housekeeping program?