Jackson County Senior Services is a nonprofit organization providing three services to seniors who live in their own homeshome
nursing, Meals on Wheels, and housekeeping. Revenue and expense data for the past year follow:
Allocated on the basis of program revenues.
The head administrator of Jackson County Senior Services, Judith Miyama, is considering discontinuing the housekeeping program.
The depreciation in housekeeping is for a small van 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 was dropped, but the liability insurance and the salary of the program administrator
would be avoided.
Required:
a What is the financial advantage disadvantage of discontinuing the Housekeeping program?
b Based on the financial advantage disadvantage of discontinuing the Housekeeping program calculated in requirement Req
should the Housekeeping program be discontinued?
Complete this question by entering your answers in the tabs below.
What is the financial advantage disadvantage of discontinuing the Housekeeping program?
