Chapter 13 - Question 1: (2 points) Exercise 13-2 Dropping...

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Question 1: (2 points)
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Exercise 13-2 Dropping or Retaining a Segment [LO2] Jackson County Senior Services is a nonprofit organization devoted to pro who live in their own homes within the Jackson County area. Three servi nursing, meals on wheels, and housekeeping. In the home nursing progra basis to check on their general health and to perform tests ordered by the program delivers a hot meal once a day to each senior enrolled in the p provides weekly housecleaning and maintenance services. Data on reven follow: Total Revenues $ 900,000 Variable expenses 490,000 Contribution margin 410,000 Fixed expenses: Depreciation 68,000 Liability insurance 42,000 Program administrators' salaries 115,000 General administrative overhead* 180,000 Total fixed expenses 405,000 Net operating income (loss) $ *Allocated on the basis of program revenues. The head administrator of Jackson County Senior Services, Judith organization's finances and considers the net operating income of $5,000 la results were very similar to the results for previous years and are represen the future.) She feels that the organization should be building its financial re to prepare for the next inevitable recession. After seeing the above re information about the financial advisability of perhaps discontinuing the hous The depreciation in housekeeping is for a small van that is used to equipment from job to job. If the program were discontinued, the van organization. Depreciation charges assume zero salvage value. None of would be avoided if the housekeeping program were dropped, but the liab program administrator would be avoided. Requirement 1: (a) What is the amount of the change in net income if the housekeeping un positive value. Omit the "$" sign in your response.) in net operating income
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Question 2: (2 points)
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Exercise 13-3 Make or Buy a Component [LO3] Climate-Control, Inc., manufactures a variety of heating and air-condition
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This homework help was uploaded on 04/19/2008 for the course ACG 2071 taught by Professor Smith during the Fall '07 term at University of Central Florida.

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Chapter 13 - Question 1: (2 points) Exercise 13-2 Dropping...

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