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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. Total $ 933,000 461,000 472,000 Home Nursing $ 268,000 118,000 158, eee Meals On Wheels $ 407, eee 192, eee 215, eee House- keeping $ 258, eee 151,00 107, see Revenues Variable expenses Contribution margin Fixed expenses: Depreciation Liability insurance Program administrators' salaries General administrative overhead Total fixed expenses Net operating income (loss) 79, 280 43,500 115,600 186,680 415,990 $ 56,180 8,689 20,388 40,988 53,688 123,400 $ 26,680 40,820 7,488 38,888 81,400 168, 4ee $ 46,680 2e, see 15,800 35,900 51,600 124, 100 $ (17,180) *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 $56,100 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? 1-6. Based on the financial advantage (disadvantage) of discontinuing the Housekeeping program calculated In requirement Req 1A, should the Housekeeping program be discontinued? 2-a. Prepare a properly formatted segmented Income statement. 2-6. 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. Reg 1A Req 1B Reg 2A Reg 2B What is the financial advantage (disadvantage) of discontinuing the Housekeeping program?

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