Jackson County Senior Services is a nonprofit organization providing three services to seniors who live in their own homes-home nursing, Meals on Wheels, and housekeeping. Revenue and expense data for the past year follow: Revenues Variable expenses Contribution margin Fixed expenses: Depreciation Liability insurance Program administrators' salaries General administrative overhead* Total fixed expenses Net operating income (loss) Home Nursing Total $ 929,000 $ 270,000 471,000 458,000 69,800 44,000 Required 1A Required 1B. 112,000 158,000 8,900 20,800 40,800 54,000 124,500 < Required 1A Meals on Wheels $ 401,000 207,000 194,000 20,600 15,800 115,800 36,600 185,800 51,600 415,400 124,600 $ 42,600 $ 33,500 $ 27,700 $ (18,600) Allocated on the basis of program revenues. The head administrator of Jackson County Senior Services, Judith Miyama, is considering discontinuing the housekeeping program. The depreciation in housekeeping is for a small van 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 was dropped, but the liability insurance and the salary of the program administrator would be avoided. Complete this question by entering your answers in the tabs below. 40,300 7,400 38,400 80,200 166,300 Required: -a. What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? -b. Based on the financial advantage (disadvantage) of discontinuing the Housekeeping program calculated in requirement Req 1A, should the Housekeeping program be discontinued? Housekeeping $ 258,000 152,000 106,000 What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? Required 1B >
Jackson County Senior Services is a nonprofit organization providing three services to seniors who live in their own homes-home nursing, Meals on Wheels, and housekeeping. Revenue and expense data for the past year follow: Revenues Variable expenses Contribution margin Fixed expenses: Depreciation Liability insurance Program administrators' salaries General administrative overhead* Total fixed expenses Net operating income (loss) Home Nursing Total $ 929,000 $ 270,000 471,000 458,000 69,800 44,000 Required 1A Required 1B. 112,000 158,000 8,900 20,800 40,800 54,000 124,500 < Required 1A Meals on Wheels $ 401,000 207,000 194,000 20,600 15,800 115,800 36,600 185,800 51,600 415,400 124,600 $ 42,600 $ 33,500 $ 27,700 $ (18,600) Allocated on the basis of program revenues. The head administrator of Jackson County Senior Services, Judith Miyama, is considering discontinuing the housekeeping program. The depreciation in housekeeping is for a small van 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 was dropped, but the liability insurance and the salary of the program administrator would be avoided. Complete this question by entering your answers in the tabs below. 40,300 7,400 38,400 80,200 166,300 Required: -a. What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? -b. Based on the financial advantage (disadvantage) of discontinuing the Housekeeping program calculated in requirement Req 1A, should the Housekeeping program be discontinued? Housekeeping $ 258,000 152,000 106,000 What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? Required 1B >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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