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 $ 931,000 $266,000 $410,000 $ 255,000 207,000 470,000 112,000 461,000 154,000 69,200 43,000 20,100 40,600 Program administrators' salaries 114,100 General administrative overhead 186,200 53,200 Total fixed expenses 412,500 122,100 Net operating Income (loss) $48,500 $ 31,900 Liability Insurance 8,200 203,000 40,400 7,700 38,400 82,000 168.500 $ 34,500 151,000 104,000 20,600 15,200 35,100 51,000 121,900 $(17,900) "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 $48,500 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. 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-b. Would a segmented income statement format be more useful to management in assessing the long-run financial viability of the various services?