File Edit View History hapter 12 Homework Help Save& 5 Jackson County Senior Ser

Question

File Edit View History hapter 12 Homework Help Save& 5 Jackson County Senior Services is a nonprofit organization devoted to providing essential services to homes within the Jackson County area. Three services are provided for seniors-home nursing. Data on revenue and expenses for the past year follow Meals On Wheels, and housekeeping ciable expenses Conte ibution margin tiability insurance Progran administrators salari General adnini 9-400,500 43,70 ,70.500 Total fixed experser Net operating income (loss) Allocated on the basis of program revenues The head administrator of Jackson County Senior Services, Judith Miyama, considers last s 49,800 s 34.:© $ 45,200 $'29.400) be unsatisfactory, therefore, she is considering the possibility of year's net operating income of $49,800 to discontinuing the housekeeping program The depreciation in housekeeping is for a small van that is used to carry the housekeepers and their program were discontinued, the van would be donated to a charitable equipment from job to job. If the organization. None of the general administrative overhead be avoided if the housekeeping program were dropped, but the liability insurance and the salary of the pr would be avoided ogram administrator 1-a. What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? -b. Shoukd the Housekeeping program be discontinued? 2-a. Prepare a properly formatted segmented income statement 2-b. Would a segmented income statement various services? format be more useful to management in assessing the long-run financial viability of the 3 4 5 6 8

Explanation / Answer

Yes, since a segmented income statement would give the profitability of an individual product line and then it becomes easy for the company to decide the products which it want to continue or discontinue. It makes the company judge individual product based on the segmented income statement of the products.

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