Total $ 932,000 462,000 471,000 Hone Nursing $ 269,000 115,000 154,000 Meals on Wheels $ 405,000 193,000 212,000 House- keeping $ 258,000 153,000 105,000 Revenues Variable expenses Contribution margin Fixed expenses Depreciation Liability insurance Program administrators salaries General administrative overhead Total fixed expenses Net operating incomo llons) 69,700 43,300 115,400 186,400 414,800 5 56,200 8,600 20,400 40,800 53,800 123,600 $ 30,400 40,800 7,400 39,000 B1,000 168,200 $ 43,800 20,300 15,500 35,600 51,600 123,000 $ (18,000) "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 $56,200 to be unsatisfactory, therefore, she is considering the possibility of discontinuing the housekeeping program The depreciation in housekeeping is for a small von 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 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