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 Net operating income (loss). Home Nursing Meals on Wheels Total $ 929,000 $263,000 $ 408,000 471,000 116,000 199,000 458,000 147,000 209,000 69,100 43,300 115, 100 185,800 413,300 $ 44,700 Required 1A Required 18. 8,400 40,300 20,400 20,200 8,000 15,100 40,100. 38,800 36,200 52,600 81,600 51,600 121,300 168,700 123,300 $ 25,700 $ 40,300 $ (21,300) "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? Housekeeping $ 258,000 156,000 102,000 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. 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 Net operating income (loss). Home Nursing Meals on Wheels Total $ 929,000 $263,000 $ 408,000 471,000 116,000 199,000 458,000 147,000 209,000 69,100 43,300 115, 100 185,800 413,300 $ 44,700 Required 1A Required 18. 8,400 40,300 20,400 20,200 8,000 15,100 40,100. 38,800 36,200 52,600 81,600 51,600 121,300 168,700 123,300 $ 25,700 $ 40,300 $ (21,300) "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? Housekeeping $ 258,000 156,000 102,000 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. What is the financial advantage (disadvantage) of discontinuing the Housekeeping program?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
Net operating income (loss)
Total
$ 929,000
471,000
458,000
69,100
43,300
115,100
185,800
413,300
Home
Nursing
$ 263,000
116,000
147,000
Required 1A Required 1B
8,400
20,200
40,100
52,600
121,300
Meals on
Wheels
$ 408,000
199,000
209,000
40,300
8,000
38,800
81,600
168,700
Complete this question by entering your answers in the tabs below.
Required:
1-a. What is the financial advantage (disadvantage) of discontinuing the Housekeeping program?
36,200
51,600
123,300
$ 44,700 $ 25,700 $ 40,300 $ (21,300)
"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.
Housekeeping
$ 258,000
156,000
102,000
20,400
15,100
1-b. Based on the financial advantage (disadvantage) of discontinuing the Housekeeping program calculated in requirement Req 1A,
should the Housekeeping program be discontinued?
What is the financial advantage (disadvantage) of discontinuing the Housekeeping program?
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