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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 seniors-home nursing, Meals on Wheels, and housekeeping. Data on revenue and expenses for the past year follow Home Meals On Total Nursing Wheels $ 923,000 $265,000 $ 407,000 461,608 113,000 197,000 462,000 152,000 210,000 House- keeping $ 251,000 151,000 100,000 Revenues Variable expenses Contribution margin Fixed expenses: Depreciation Liability insurance Program administrators! salaries General administrative overheads Total fixed expenses Net operating income (loss) 68,900 43,300 116,300 184,600 413, 100 $ 48,990 8,480 20,200 41,000 53,000 122,600 $ 29,480 40,300 7,200 39,000 81,400 167,988 $ 42,100 20,200 15,900 36,300 50,200 122,600 $ (22,600) "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 $48,900 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. Based on the financial advantage (disadvantage) of discontinuing the Housekeeping program calculated in requirement Regia, 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

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