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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:

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: Meals On House- Nursing Wheels keeping $.929,000 $.269,000 404,000 $. 256,000 157,000 99,000 Home Total Revenues Variable expenses 467,000 462,000 118,000 151,000 192,008 212,000 Contribution margin Fixed expenses Depreciation Liability insurand Program administrators' salaries General administrative overhead 69,900 44,600 115,100 185,800 415,400 8,800 20,800 40,100 53,800 123,500 20,200 16,000 36,500 51, 200 123,900 44,000 $ (24,900) 40,900 7,800 38,500 80,800 168,000 Total fixed expenses Net operating income (loss) $ 46,600 27,500 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 $46,600 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? Req 1A Req 1B Req 2A Req 2B What is the financial advantage (disadvantage) of discontinuing the Housekeeping program

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