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?

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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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…
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 $ 923,000 $ 265,000 $ 405,000 $ 253,000 Variable expenses 470,000 111,000 202,000 157,000 Contribution margin 453,000 154,000 203,000 96,000 Fixed expenses: Depreciation 69,200 8,200 40,400 20,600 Liability insurance 43,800 20,300 7,600 15,900 Program administrators’ salaries 116,000 40,900 38,200 36,900 General administrative overhead* 184,600 53,000 81,000 50,600 Total fixed expenses 413,600 122,400 167,200 124,000 Net operating income (loss) $ 39,400 $ 31,600 $ 35,800 $ (28,000) *Allocated on the basis of program revenues. The head administrator of Jackson County Senior…
ackson 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 $ 268, 000 $ 408,000 $ 253,000 Variable expenses 481,000 115,000 209,000 157,000 Contribution margin 448,000 153,000 199,000 96,000 Fixed expenses: Depreciation 69,000 8,300 40, 500 20, 200 Liability insurance 43,200 20, 300 7,600 15,300 Program administrators' salaries 114,600 40,700 38,400 35, 500 General administrative overhead *185,800 53, 600 81, 600 50, 600 Total fixed expenses 412,600 122,900 168, 100 121,600 Net operating income (loss) $ 35, 400 $ 30,100 $ 30,900 $ (25,600) * Allocated on the basis of program revenues. The head administrator of Jackson County Senior Services, Judith Miyama, considers…
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 $ 919,000 $ 262,000 $ 402,000 $ 255,000 Variable expenses 471,000 112,000 205,000 154,000 Contribution margin 448,000 150,000 197,000 101,000 Fixed expenses: Depreciation 69,700 8,200 40,800 20,700 Liability insurance 43,100 20,100 7,400 15,600 Program administrators’ salaries 116,600 40,900 38,700 37,000 General administrative overhead* 183,800 52,400 80,400 51,000 Total fixed expenses 413,200 121,600 167,300 124,300 Net operating income (loss) $ 34,800 $ 28,400 $ 29,700 $ (23,300) *Allocated on the basis of program revenues. The head administrator of Jackson County Senior…
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: Home Meals On House- keeping $ 924,000 $ 267,000 $ 405,000 $ 252,000 157,000 95,000 Total Nursing Wheels Revenues Variable expenses 477,000 447,000 115,000 152,000 205,000 200,000 Contribution margin Fixed expenses: Depreciation Liability insurance Program administrators' salaries General administrative overhead* 69,200 42,500 115,300 184,800 411,800 8,400 20,200 40,200 40,200 7,200 38,800 20,600 15,100 36,300 53,400 122,200 81,000 167,200 50,400 122,400 Total fixed expenses Net operating income (loss) $ 35,200 $ 29,800 $ 32,800 $ ( 27,400) *Allocated on the basis of program revenues.
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: Home Meals On House- Total Nursing Wheels keeping $ 924,000 $ 267,000 $ 405,000 $ 252,000 205,000 200,000 Revenues Variable expenses 477,000 447,000 157,000 95,000 115,000 Contribution margin 152,000 Fixed expenses: Depreciation Liability insurance Program administrators' salaries General administrative overhead* 69,200 42,500 115,300 184,800 8,400 20,200 40,200 53,400 40,200 7,200 38,800 20,600 15,100 36,300 50,400 81,000 167,200 Total fixed expenses 411,800 122,200 122,400 Net operating income (loss) $ 35,200 $ 29,800 $ 32,800 $ (27, 400) *Allocated on the basis of program revenues.
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 Liability insurance. Program administrators' salaries General administrative overhead* Total fixed expenses Net operating income (loss) Total $ 924,000 469,000 455,000 70,500 43,500 114,100 184,800 412,900 $ 42,100 Home Nursing $ 264,000 119,000 145,000 8,900 20,300 40,200 52,800 122, 200 $ 22,800 Meals On Wheels $ 409,000 194,000 215,000 40,800 7,300 38,800 81,800 168, 700 House- keeping $ 251,000 156,000 95,000 20,800 15,900 35,100 50,200 122,000 $ 46,300 $ (27,000) *Allocated on the basis of program revenues. The head administrator of Jackson County Senior Services, Judith Miyama, considers last…
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 Liability insurance Program administrators' salaries General administrative overhead* Total fixed expenses Net operating income (loss) Req 1A *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 $46,000 to be unsatisfactory; therefore, she is considering the possibility of discontinuing the housekeeping program. Complete this question by entering your answers in the tabs below. Reg 1A The depreciation in housekeeping is for a small van that is used to carry the housekeepers and their equipment…
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…
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…
Tagaytay Twilight Senior Services is a newly established corporation devoted to providing essential services to seniors who live in their own homes within the Tagaytay City and its neighboring areas. 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 perform test 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 2017 follow: Total Home Nursing Meals on Wheels House Keeping Revenues .................................... 900,000 260,000 400,000 240,000 Variable expenses........................ 490,000 120,000 210,000 160,000 Fixed expenses: Depreciation ............................ 68,000…