Week 13 Homework Saved Help Save & Exit Submit Check my work 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 Home Meals On House- Total Nursing Wheels keeping $ 920,000 $ 269,000 $ 400,000 $ 251,000 457,000 113,000 193,000 151,000 463,000 156,000 207,000 100,000 02:23:32 Revenues Variable expenses Contribution margin Fixed expenses: Depreciation Liability insurance Program administrators' salaries General administrative overhead* Total fixed expenses Net operating income (loss) eBook 69, 700 8,700 40,300 20,700 44,100 20,800 7,500 15,800 115,700 41,000 38,700 36,000 184,000 53,800 80,000 50,200 413,500 124,300 166,500 122,700 $ 49,500 $ 31,700 $ 40,500 $(22,700) References *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 $49,500 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. | Mc Pru TH Most > would be avoided if the housekeeping program were dropped, but the liability insurance and the salary of the program administrator would be avoided. pints 02:23:24 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 Req 1A, 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? eBook References Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2A Req 2B What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? Week 13 Homework Saved Help Save & Exit Submit Check my work 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 Home Meals On House- Total Nursing Wheels keeping $ 920,000 $ 269,000 $ 400,000 $ 251,000 457,000 113,000 193,000 151,000 463,000 156,000 207,000 100,000 02:23:32 Revenues Variable expenses Contribution margin Fixed expenses: Depreciation Liability insurance Program administrators' salaries General administrative overhead* Total fixed expenses Net operating income (loss) eBook 69, 700 8,700 40,300 20,700 44,100 20,800 7,500 15,800 115,700 41,000 38,700 36,000 184,000 53,800 80,000 50,200 413,500 124,300 166,500 122,700 $ 49,500 $ 31,700 $ 40,500 $(22,700) References *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 $49,500 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. | Mc Pru TH Most > would be avoided if the housekeeping program were dropped, but the liability insurance and the salary of the program administrator would be avoided. pints 02:23:24 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 Req 1A, 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? eBook References Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2A Req 2B What is the financial advantage (disadvantage) of discontinuing the Housekeeping program
