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:

		Total		Home Nursing		Meals On Wheels		House- keeping
Revenues	$	917,000	$	262,000	$	403,000	$	252,000
Variable expenses		475,000		110,000		208,000		157,000
Contribution margin		442,000		152,000		195,000		95,000
Fixed expenses:
Depreciation		68,800		8,600		40,100		20,100
Liability insurance		43,800		20,500		7,800		15,500
Program administrators salaries		114,500		40,500		38,500		35,500
General administrative overhead*		183,400		52,400		80,600		50,400
Total fixed expenses		410,500		122,000		167,000		121,500
Net operating income (loss)	$	31,500	$	30,000	$	28,000	$	(26,500)
Allocated on the basis of program revenues. The head administrator of Jackson County Senior Services, Judith Miyama, considers last years net operating income of $31,500 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. Required: 1-a. What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? 1-b. Should the Housekeeping program be discontinued? yes/NO 2-a. Prepare a properly formatted segmented income statement. Total Home Nursing Meals On Wheels House-keeping Revenues Variable expenses Contribution margin 0 0 0 0 Traceable fixed expenses: Depreciation Liability insurance Program administrators salaries Total traceable fixed expenses 0 0 0 0 Program segment margins 0 $0 $0 $0 General administrative overhead Net operating income (loss) 0 2-b. Would a segmented income statement format be more useful to management in assessing the long-run financial viability of the various services? yes/no