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Check my work Total $927,000 $ 471,000 456,000 Home Nursing 262,000 $ 111,000 151,000 Meals On House- Wheels keeping 407,000 $ 258, 680 203,899 157, eee 284,809 101,eee Revenues Variable expenses Contribution margin Fixed expenses: Depreciation Liability insurance Program administrators salaries General administrative overhead Total fixed expenses Net operating income (loss) 69,700 43,900 115,600 8,709 20,700 40,700 40,809 7,80 38,900 20,200 15,480 36,000 185,400 414,600 $ 41,400 52,400 122,500 28,500 $ 81,400 51,600 168,900 123,200 35,100 $(22,200) $ *Allocated on the basis of program revenues. The head administrator of Jackson County Senior Services, Judith Miyama, considers as net operating income of $41400 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 ability insurance and the salary of the program administrator would be avoided. “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 $41,400 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. 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 in the tabs below. Req1A Reg 1B Req 2A Reg 2B What is the financial advantage (disadvantage) of discontinuing the Housekeeping program Financial (disadvantage)

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