Research × v Assignments: SP18: INT ir. Connect Accounting question] × C Secure

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Research × v Assignments: SP18: INT ir. Connect Accounting question] × C Secure https//n Chapter 12 Homework Saved Help Save& Exit Submit my work 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 2 points Home Meals On House Nursing Wheels keeping $ 925,0e0 $ 268,088 $ 407,803 258,880 463,000 119,000 192,800 152,080 98,000 Total Variable expenses Contribution margin Fixed expenses: eBook 462,000 149,000 215,800 Print Depreciation Liability insurance Program administrators' salaries 21,000 15,480 36,180 50,000 412,980 123,000 167,400 122,580 $ 49,180 26,080 47,60 (24,500) 69,680 43.50e 114,800 185,900 8,280 28,700 48.580 53,600 40 ,4 @ 7,403 38,200 81,400 References General administrative overhead Totol fixed expenses Net operating income (loss) 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 $49,100 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. Mc O Type here to search 9:49 AM 4/23/2018

Explanation / Answer

Answer 1-a

If House-Keeping Division is Discontinued:

Answer 1-b:

Since there is net financial disadvantage of discontinuing house keeping program, the program should not be discontinued.

Answer 2-a

Segmented Income Statement:

Answer 2-b

Since the segmented income statement takes into account all segment specific revenue & cost, it will be useful to management in assessing the long-run financial viability of the various services.

Loss of Contribution Margin           (98,000) Savings of Liability Insurance             15,400 Savings of Program Administrators' Salaries             36,100 Net Financial Advantage / (Disadvantage)           (46,500)

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