Jackson County Senior Services is a nonprofit organization devoted to providing essential services to seniors who live in their ownhomes 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:RevenuesVariable expensesContribution marginFixed expenses:DepreciationLiability insurance.Program administrators' salaries.General administrative overhead*Total fixed expensesNet operating income (loss)Total$ 923,000474,000449,00069,30043,100114,100184, 600411,100$ 37,900Req 1AHome Nursing$ 265,000119,000146,000Req 1B8,20020,60040,30053,000122, 100$ 23,900*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 $37,900 tobe unsatisfactory; therefore, she is considering the possibility of discontinuing the housekeeping program.Req 2AThe depreciation in housekeeping is for a small van that is used to carry the housekeepers and their equipment from job to job. If theprogram were discontinued, the van would be donated to a charitable organization. None of the general administrative overheadwould be avoided if the housekeeping program were dropped, but the liability insurance and the salary of the program administratorwould be avoided.Complete this question by entering your answers in the tabs below.Req 2BMeals OnWheels$ 406,000204,000202,000Required: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 thevarious services?House-keeping$ 252,000151,000101,00040,20020,9007,30015, 20038,50081,200167,20035,30050,400121,800$ 34,800 $ (20,800)What is the financial advantage (disadvantage) of discontinuing the Housekeeping program?

A segmented contribution margin income statement is a financial report that displays the…

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 housekeepi Data on revenue and expenses for the past year follow: Revenues Variable expenses Contribution margin Fixed expenses: Depreciation Liability insurance Program administrators' salaries General administrative overhead* Total fixed expenses Net operating income (loss) Total $ 923,000 474,000 449,000 Req 1A 69,300 43,100 Req 1B 114,100 184,600 411,100 $ 37,900 Req 2A Home Nursing $ 265,000 119,000 146,000 Req 2B 8,200 20,600 40,300 53,000 122,100 $ 23,900 Complete this question by entering your answers in the tabs below. *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 $37,900 to be unsatisfactory; therefore, she is considering the possibility of discontinuing the housekeeping program. Meals On Wheels $ 406,000 204,000 202,000 The depreciation in housekeeping is for a small van that is used to carry the housekeepers and their equipment from job to job. If th 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 administrato 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? House-keeping $ 252,000 151,000 101,000 40,200 7,300 20,900 15, 200 38,500 35,300 81,200 50,400 167,200 121,800 $ 34,800 $ (20,800)