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: Revenues Variable expenses Contribution margin Fixed expenses: Depreciation Total Home Nursing Meals On Wheels House-keeping $ 925,000 $263,000 $ 403,000 $ 259,000 475,000 116,000 205,000 154,000 450,000 147,000 198,000 105,000 69,700 8,200 43,400 20,500 40,400 52,600 413,500 121,700 $36,500 $25,300 Liability insurance Program administrators' salaries 115,400 General administrative overhead* 185,000 Total fixed expenses Net operating income (loss) 40,900 7,500 38,400 80,600 167,400 $ 30,600 20,600 15,400 36,600 51,800 124,400 S (19,400) Required: 1-a. What is the financial advantage (disadvantage) of discontinuing the Housekeeping program?

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: Revenues Variable expenses Contribution margin Fixed expenses: Depreciation Total Home Nursing Meals On Wheels House-keeping $ 925,000 $263,000 $ 403,000 $ 259,000 475,000 116,000 205,000 154,000 450,000 147,000 198,000 105,000 69,700 8,200 43,400 20,500 40,400 52,600 413,500 121,700 $36,500 $25,300 Liability insurance Program administrators' salaries 115,400 General administrative overhead* 185,000 Total fixed expenses Net operating income (loss) 40,900 7,500 38,400 80,600 167,400 $ 30,600 20,600 15,400 36,600 51,800 124,400 S (19,400) Required: 1-a. What is the financial advantage (disadvantage) of discontinuing the Housekeeping program?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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10-15. Jefferson Animal Rescue is a private not-for-profit clinic and shelter for abandoned domesticated animals, chiefly dogs and cats. At the end of 2019, the organization had the following account balances: [See attached image] The following took place during 2020: 1. Additional supplies were purchased on account in the amount of $16,050.2. Unconditional (and unrestricted) pledges of support were received totaling $95,000. In light of a declining economy, 4 percent is expected to be uncollectible. The remainder is expected to be collected in the current year.3. Supplies used for animal care amounted to $17,200.4. Payments made on accounts payable amounted to $17,100.5. Cash collected from pledges totaled $90,500.6. Salaries were paid in the amount $47,500. Included in this amount is the accrued wages payable at the end of 2019. (The portion of wages expense attributable to administrative expense is $15,000 and fund-raising expense is $2,000. The remainder is for animal care.)7.…