Alert for not submit AI generated answer. I need unique and correct answer. Don't try to copy from anywhere. Do not give answer in image formet and hand writing Required:1-a. Compute the change in net operating income for the company as a whole if housekeeping program be discontinued.1-b. Should the housekeeping program be discontinued?O YesO Noin net operating income by2. Would a segmented Income statement format be more useful to management in assessing the long-run financial viability of thevarious services?O YesO No Cumberland County Senior Services is a non-profit organization devoted to providing essential services to seniors who live in theirown homes within the Cumberland County area. Three services are provided for seniors-home nursing, Meals on Wheels, andhousekeeping. In the home nursing program, nurses visit seniors on a regular basis to check on their general health and to performtests ordered by their physicians. The Meals on Wheels program delivers a hot meal once a day to each senior enrolled in theprogram. The housekeeping service provides weekly housecleaning and maintenance services. Data on revenue and expenses forthe past year follow:RevenuesVariable expensesContribution marginFixed expenses iDepreciationLiability insuranceProgram administrators' salariesGeneral administrative overhead*Total fixed expensesOperating income (loss)Total$909,000495,700413,30068,38042,370115,650181,800408,200HomeNursing$262,600121,400141,2008,08020,15040,25052,520Meals onWheels$404,000212,500191,50040,1507,10038,15080,800166,200121,000$ 5,100 $ 20,200 $ 25,300House-keeping$242,400161,80080,60020,15015,12037,25040,480121,000$(40,400)"Allocated on the basis of program revenues.The head administrator of Cumberland County Senior Services, Judith Ewa, is concerned about the organization's finances andconsiders the operating income of $5,100 last year to be razor-thin. (Last year's results were very similar to the results for previousyears and are representative of what would be expected in the future.) She feels that the organization should be building its financialreserves at a more rapid rate in order to prepare for the next inevitable recession. After seeing the above report, Ewa asked for moreinformation about the financial advisability of discontinuing the housekeeping program.The depreciation in the housekeeping category is for a small van that is used to carry the housekeepers and their equipment from jobto job. If the program were discontinued, the van would be donated to a charitable organization. Depreciation charges assume zerosalvage value. None of the general administrative overhead would be avoided if the housekeeping program were dropped, but theliability insurance and the salary of the program administrator would be avoided.

Segmented income statement helps in showing the sales and specific costs associated with different…

Answered: 1-a. Compute the change in net…

Business

Accounting

1-a. Compute the change in net operating income for the company as a whole if housekeeping program be discontinued.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Cumberland County Senior Services is a non-profit organization devoted to providing essential services to seniors who live in their own homes within the Cumberland County area. Three services are provided for seniors-home nursing, Meals on Wheels, and housekeeping. In the home nursing program, nurses visit seniors on a regular basis to check on their general health and to perform tests ordered by their physicians. The Meals on Wheels program delivers a hot meal once a day to each senior enrolled in the program. The housekeeping service provides weekly housecleaning and maintenance services. 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 Operating income (loss) Total $1,044,000 Home Nursing $301,600 Meals on House- Wheels keeping $464,000 $278,400 581,200 142,400 250,000 188,800 462,800 159,200…
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 Revenues $ 929,000 $ 266,000 $ 406,000 $ 257,000 Variable expenses 468,000 116,000 196,000 156,000 Contribution margin 461,000 150,000 210,000 101,000 Fixed expenses: Depreciation 69,400 8,400 40,900 20,100 Liability insurance 43,400 20,500 7,400 15,500 Program administrators’ salaries 115,900 40,500 38,600 36,800 General administrative overhead* 185,800 53,200 81,200 51,400 Total fixed expenses 414,500 122,600 168,100 123,800 Net operating income (loss) $ 46,500 $ 27,400 $ 41,900 $ (22,800) *Allocated on the basis of program revenues. The head administrator of Jackson County Senior Services, Judith Miyama, considers last year’s…
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 Revenues $ 927,000 $ 267,000 $ 402,000 $ 258,000 Variable expenses 465,000 114,000 195,000 156,000 Contribution margin 462,000 153,000 207,000 102,000 Fixed expenses: Depreciation 68,800 8,100 40,400 20,300 Liability insurance 43,200 20,200 7,600 15,400 Program administrators’ salaries 115,400 40,900 38,100 36,400 General administrative overhead* 185,400 53,400 80,400 51,600 Total fixed expenses 412,800 122,600 166,500 123,700 Net operating income (loss) $ 49,200 $ 30,400 $ 40,500 $ (21,700) *Allocated on the basis of…
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Maria's Food Service provides meals that nonprofit organizations distribute to handicapped and elderly people.
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Jackson County Senior Services is a nonprofit organization devoted to providing essential ser-vices 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: The head administrator of Jackson County Senior Services, Judith Miyama, is concerned about the organization’s finances and considers the net operating income of $5,000 last year to be razor-thin. (Last year’s results were very similar to the results for previous years and are representative of what would be expected in the future.) She feels that the organization should be building its financial reserves at a more rapid rate in order to prepare for the next inevitable recession. After seeing the above report, Ms. Miyama asked for more information about the financial advisability of perhaps discontinuing the housekeeping program. The depreciation in housekeeping is for a…