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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 seniorshome 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 $ 928,000 $ 265,000 $ 408,000 $ 255,000 Variable expenses 466,000 115,000 194,000 157,000 Contribution margin 462,000 150,000 214,000 98,000 Fixed expenses: Depreciation 69,600 8,900 40,200 20,500 Liability insurance 43,600 20,100 7,700 15,800 Program administrators' salaries 113,900 40,100 38,400 35,400 General administrative overhead* 185,600 53,000 81,600 51,000 Total fixed expenses 412,700 122,100 167,900 122,700 Net operating income (loss) $ 49.300 $ 27,900 $ 46,100 $ (24.700) *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 $49,300 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 tojob. 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 nancial advantage (disadvantage) of discontinuing the Housekeeping program? 1b. 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. 2b. Would a segmented income statement format be more useful to management in assessing the long-run financial viability of the various services

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