Jackson County Senior Services is a nonprofit organization providing three services to seniors who live in their own homes-home nursing. Meals on Wheels, and housekeeping. Revenue and expense data for the past year follow. Revenues variable expenses Contribution margin Fixed expenses: Depreciation Liability insurance Program administrators' salaries General administrative overhead Total fixed expenses Meals on wheels $ 486,000 Total $ 926,000 450,eee Home Nursing $ 269,000 110,eee Housekeeping 190,000 476,000 159,000 216,000 $ 251,000 150,000 101,000 78,500 9,000 40,700 20,800 43,400 20,200 7,400 15,800 114,200 40,600 38,400 35,200 185,200 53,000 61,200 50,200 413,300 123,600 167,700 122,000 $ 62,700 $ 35,400 $ 48,300 $ (21,000) Net operating income (loss) "Allocated on the basis of program revenues. The head administrator of Jackson County Senior Services, Judith Miyama, is considering discontinuing the housekeeping program. The depreciation in housekeeping is for a small van 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 was 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? Complete this question by entering your answers in the tabs below. Required 1A Required 18 What is the financial advantage (disadvantage) of discontinuing the Housekeeping program?
Jackson County Senior Services is a nonprofit organization providing three services to seniors who live in their own homes-home nursing. Meals on Wheels, and housekeeping. Revenue and expense data for the past year follow. Revenues variable expenses Contribution margin Fixed expenses: Depreciation Liability insurance Program administrators' salaries General administrative overhead Total fixed expenses Meals on wheels $ 486,000 Total $ 926,000 450,eee Home Nursing $ 269,000 110,eee Housekeeping 190,000 476,000 159,000 216,000 $ 251,000 150,000 101,000 78,500 9,000 40,700 20,800 43,400 20,200 7,400 15,800 114,200 40,600 38,400 35,200 185,200 53,000 61,200 50,200 413,300 123,600 167,700 122,000 $ 62,700 $ 35,400 $ 48,300 $ (21,000) Net operating income (loss) "Allocated on the basis of program revenues. The head administrator of Jackson County Senior Services, Judith Miyama, is considering discontinuing the housekeeping program. The depreciation in housekeeping is for a small van 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 was 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? Complete this question by entering your answers in the tabs below. Required 1A Required 18 What is the financial advantage (disadvantage) of discontinuing the Housekeeping program?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working
Transcribed Image Text:Jackson County Senior Services is a nonprofit organization providing three services to seniors who live in their own homes-home
nursing. Meals on Wheels, and housekeeping. Revenue and expense data for the past year follow.
Revenues
variable expenses
Contribution margin
Fixed expenses:
Depreciation
Liability insurance
Program administrators' salaries
General administrative overhead
Total fixed expenses
Meals on
wheels
$ 486,000
Total
$ 926,000
450,eee
Home Nursing
$ 269,000
110,eee
Housekeeping
190,000
476,000
159,000
216,000
$ 251,000
150,000
101,000
78,500
9,000
40,700
20,800
43,400
20,200
7,400
15,800
114,200
40,600
38,400
35,200
185,200
53,000
61,200
50,200
413,300
123,600
167,700
122,000
$ 62,700
$ 35,400
$ 48,300
$ (21,000)
Net operating income (loss)
"Allocated on the basis of program revenues.
The head administrator of Jackson County Senior Services, Judith Miyama, is considering discontinuing the housekeeping program.
The depreciation in housekeeping is for a small van 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 was 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?
Complete this question by entering your answers in the tabs below.
Required 1A Required 18
What is the financial advantage (disadvantage) of discontinuing the Housekeeping program?
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