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 Revenues $926,000 $267,000 $401,000 $ 258,000 Variable expenses 479,00 120,000 209,000 150,000 Contribution nargin 447,000 147.000 192.800 108,000 Fixed expenses Depreciation 69,700 8,500 41,000 20,200 Liability insurance 43, 100 20,500 7,380 15,300 Progran administrators' salaries 114,889 40,900 38,200 35,700 General administrative overheads 185,200 53,400 80,200 51,600 Total fixed expenses 412,600 123), 300 122,800 Net operating income (loss) $ 34,200 $ 23,700 $ 25,300 $(14,800) "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 $34.200 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 lability insurance and the salary of the program administrator would be avoided Required: 1-0 What is the financial advantage (disadvantage of discontinuing the Housekeeping program? 1-5. 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. Reg 1A Req 1B Red 2A Reg 28 What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? Reg 10 > Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Reg 2A Reg 28 Should the Housekeeping program be discontinued? Yos No Print Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Req 2A Reg 28 Prepare a property formatted segmented income statement. Total Home Nursing Meals On Wheels House- keeping Revenues Variable expenses Contribution margin Traceable fixed expenses Depreciation Liability insurance Program administrators' salaries Total traceable foxed expenses Program segment margins General administrative overhead Net operating income (los) Complete this question by entering your answers in the tabs below. Req 1A Req 18 Req ZA Reg 28 Would a segmented Income statement format be more useful to management in assessing the long-run financial viability of the various services? OYes ON
