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Done< AA ezto.mheducation.com W06 Homework: Chapter 11-20 Saved Help Save & Exit 2 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: Total Home Nursing Meals On Wheels House- keeping $250,000 Revenues Variable expenses $ 928,000 468,000 460,000 $ 269,000 118,000 $ 401,000 190,000 160,000 151,000 211,000 98,000 Contribution margin Fixed expenses: Depreciation 70,000 8,900 40,900 20,200 Liability insurance 42,800 20,100 7,500 15,200 Program administrators' salaries 114,400 40,100 38,200 36,100 General administrative overhead Total fixed expenses 185,600 53,800 80,200 51,600 412,800 122,900 166,800 123, 100 Net operating income (loss) $ 47,200 $ 28,100 $ 44,200 $ (25,100) "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 $47,200 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? Complete this question by entering your answers the low. < Prev Next 60 points 2 032033) Book ច References Mc Graw Hill 2 of 2 Submit Check my work 41% 1
Complete this question by entering your answers in the tabs below. Req 1A Req 1B Reg 2A Req 28 Prepare a properly formatted segmented income statement. Total Home Nursing Meals On Wheels Revenues Variable expenses Contribution margin Traceable fixed expenses: Depreciation Liability insurance Program administrators' salaries Total traceable fixed expenses Program segment margins. General administrative overhead Net operating income (loss) < Req 18 Req 28 > House- keeping