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- Total Home Nursing Wheels keeping Revenues $ 925,000 $ 262,000 $ 409,000 $ 254,080 Variable expenses 475,000 111,080 208,000 156,000 Contribution margin 450,000 151,000 201,000 98,000 Fixed expenses: Depreciation 69,000 8,400 40,300 20,300 Liability insurance 44,100 28,200 8,000 15,900 Program administrators' salaries 115,300 41,000 38,400 35,900 General administrative overheads 185,000 52,400 81,800 Se,800 Total fixed expenses 413,400 122,000 168,500 122,900 Net operating income (loss) $ 36,600 $ 29,000 $ 32,500 $ (24,900) "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 $36,600 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. Req 1A Req 1B Req 2A Req 2B What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? Reg 1A Reg 1B Reg 1A Realle Req ZA Req 28 Based on the financial advantage (disadvantage) of discontinuing the Housekeeping program calculated in requirement Reg 1A, should the Housekeeping program be discontinued? Yes OO No Prepare a properly formatted segmented income statement. Total Home Nursing Meals On Wheels House- keeping 0 0 0 Revenues Variable expenses Contribution margin Traceable fixed expenses Depreciation Liability insurance Program administrators' salaries Total traceable fixed expenses Program segment margins General administrative overhead Net operating income (loss) 0 0 0 0 $ 0 0 $ 0 0 $ 0 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 Reg 1A should the Housekeeping program be discontinued? 2-a. Prepare a property 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? Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Reg 2A Reg 2B Would a segmented income statement format be more useful to management in assessing the long-run financial viability of the various services? Yes No