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?
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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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