Homework Help is Here – Start Your Trial Now!
Business
Accounting
ntribution margin xed expenses: Depreciation Liability insurance Program administrators' salaries General administrative overhead tal fixed expenses t operating income (loss) 455,000 69,300 44,500 115,500 183,800 413,100 $ 41,900 143,000 8,600 21,000 40,000 52,400 122,000 $ 21,000 211,000 40,500 7,700 39,000 81,000 168,200 $ 42,800 101,000 20,200 15,800 36,500 50,400 122,900 $ (21,900)

ntribution margin xed expenses: Depreciation Liability insurance Program administrators' salaries General administrative overhead tal fixed expenses t operating income (loss) 455,000 69,300 44,500 115,500 183,800 413,100 $ 41,900 143,000 8,600 21,000 40,000 52,400 122,000 $ 21,000 211,000 40,500 7,700 39,000 81,000 168,200 $ 42,800 101,000 20,200 15,800 36,500 50,400 122,900 $ (21,900)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

A9

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 Liability insurance Program administrators' salaries General administrative overhead* Total fixed expenses Net operating income (loss) Req 1A Complete this question by entering your answers in the tabs below. Revenues Required: 1-a. What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? Req 1B "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 $41,900 to be unsatisfactory; therefore, she is considering the possibility of discontinuing the housekeeping program. Prepare a properly formatted segmented income statement. Req 1A Total $919,000 464,000 455,000 The depreciation in housekeeping is for a small van that is used to carry the housekeepers and their equipment from job to job. If the program were discontinued, the van would be donated to a charitable organization. None of the general administrative Req 2A Req 2B 69,300 44,500 115,500 183,800 413,100 $ 41,900 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? Revenues Variable expenses Total Home Nursing Meals On Home Nursing Wheels $ 262,000 $ 405,000 119,000 194,000 143,000 211,000 8,600 21,000 40,000 52,400 Req 2B Total 122,000 $ 21,000 Prepare a properly formatted segmented income statement. Meals On Wheels 40,500 7,700 39,000 81,000 168, 200 $ 42,800 What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? Would a segmented income statement format be more useful to management in assessing the long-run financial viability of the various services? Req 1B Req 2A House- keeping $ 252,000 151,000 101,000 House-keeping 20, 200 15,800 36,500 50,400 Home Nursing 122,900 $ (21,900) Meals On Wheels House-keeping
Transcribed Image Text: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 Liability insurance Program administrators' salaries General administrative overhead* Total fixed expenses Net operating income (loss) Req 1A Complete this question by entering your answers in the tabs below. Revenues Required: 1-a. What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? Req 1B "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 $41,900 to be unsatisfactory; therefore, she is considering the possibility of discontinuing the housekeeping program. Prepare a properly formatted segmented income statement. Req 1A Total $919,000 464,000 455,000 The depreciation in housekeeping is for a small van that is used to carry the housekeepers and their equipment from job to job. If the program were discontinued, the van would be donated to a charitable organization. None of the general administrative Req 2A Req 2B 69,300 44,500 115,500 183,800 413,100 $ 41,900 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? Revenues Variable expenses Total Home Nursing Meals On Home Nursing Wheels $ 262,000 $ 405,000 119,000 194,000 143,000 211,000 8,600 21,000 40,000 52,400 Req 2B Total 122,000 $ 21,000 Prepare a properly formatted segmented income statement. Meals On Wheels 40,500 7,700 39,000 81,000 168, 200 $ 42,800 What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? Would a segmented income statement format be more useful to management in assessing the long-run financial viability of the various services? Req 1B Req 2A House- keeping $ 252,000 151,000 101,000 House-keeping 20, 200 15,800 36,500 50,400 Home Nursing 122,900 $ (21,900) Meals On Wheels House-keeping
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Depletion Accounting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS