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: Revenues Variable expenses Contribution margin Fixed expenses: Depreciation Total Home Nursing Meals On Wheels House-keeping $ 925,000 $263,000 $ 403,000 $ 259,000 475,000 116,000 205,000 154,000 450,000 147,000 198,000 105,000 69,700 8,200 43,400 20,500 40,400 52,600 413,500 121,700 $36,500 $25,300 Liability insurance Program administrators' salaries 115,400 General administrative overhead* 185,000 Total fixed expenses Net operating income (loss) 40,900 7,500 38,400 80,600 167,400 $ 30,600 20,600 15,400 36,600 51,800 124,400 S (19,400) Required: 1-a. What is the financial advantage (disadvantage) of discontinuing the Housekeeping program?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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:
Revenues
Total
$ 925,000 $263,000
475,000
116,000
450,000 147,000
Home Nursing Meals On Wheels House-keeping
$ 403,000
$ 259,000
205,000
Variable expenses
Contribution margin
Fixed expenses:
Depreciation
69,700
8,200
Liability insurance
43,400
20,500
Program administrators' salaries 115,400 40,400
General administrative overhead* 185,000
52,600
Total fixed expenses
Net operating income (loss)
413,500 121,700
$ 36,500 $ 25,300
198,000
40,900
7,500
38,400
80,600
167,400
$ 30,600
154,000
105,000
20,600
15,400
36,600
51,800
124,400
$ (19,400)
Required:
1-a. What is the financial advantage (disadvantage) of discontinuing the Housekeeping program?
Transcribed Image Text: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: Revenues Total $ 925,000 $263,000 475,000 116,000 450,000 147,000 Home Nursing Meals On Wheels House-keeping $ 403,000 $ 259,000 205,000 Variable expenses Contribution margin Fixed expenses: Depreciation 69,700 8,200 Liability insurance 43,400 20,500 Program administrators' salaries 115,400 40,400 General administrative overhead* 185,000 52,600 Total fixed expenses Net operating income (loss) 413,500 121,700 $ 36,500 $ 25,300 198,000 40,900 7,500 38,400 80,600 167,400 $ 30,600 154,000 105,000 20,600 15,400 36,600 51,800 124,400 $ (19,400) Required: 1-a. What is the financial advantage (disadvantage) of discontinuing the Housekeeping program?
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