Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Should a particular segment be dropped or continued. Provide reasons.,
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 o wheels, and housekeeping. In the home nursing program, nurses visit seniors on a regular basis to check on their general health and to perform testes ordered by their physicians. The meals on wheels program deliver 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:
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
Contribution margin...............
410,000
140,000
190,000
80,000
Fixed expenses:
Depreciation.........................
68,000
8,000
40,000
20,000
Liability insurance...........................
42,000
7,000
15,000
Program administrators\' salaries........................
115,000
38,000
37,000
General administrative overhead*..................
180,000
52,000
48,000
Total fixed expenses.....................................
405,000
165,000
Net operting income (loss)................................
$5,000
$20,000
$25,000
$(40,000)
*Allocated on the basis of program revenues. 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 a 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 small van that is 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. Depreciation charges assume zero salvage value. None of the general administrative overhead would be avoided if the housekeeping program were dropped, but the liability insurance and the salary of the program administrator would be avoided.
Required:
1. Should the housekeeping program be discontinued? Explain. Show computations to support your answer. 2. Recast the above data in a format that would be more useful to management in assessing the long-run financial viability of the various services.
Prepare the necessary journal entries for Stone Company
The increase in volume will be large enough to require increases in fixed selling expenses and in general administrative overhead, but not in fixed manufacturing overhead.
If the allowance for doubtful accounts before any necessary adjustment is at $10,000, what adjustment will have to be made at the end of the period?
Examine the operations of each company. How is the company doing in this present economic environment? Is the world economy affecting the company? How?
Determine the annual rate of return on investment? Use 360 day year in your calculation and evaluate the annual rate of return on investment? Use 360 day period
Compute the book-value weights for each source of capital and Compute the market-value weights for each source of capital.
Classify the costs as either variable or fixed costs. Assume there are no mixed costs. Enter the dollar amount of each cost in the appropriate column and total each classification.
Determine the amount of gross profit to be recognized in each of the three years. Prepare all required journal entries for each of the years (credit "Various accounts" for construction costs incurred). Purpose a partial balance sheet for 2009 a..
Perform an audit for Rodriguez & Co. after the client's year-end. Due to time limitations
Purpose a complete single-step income statement for the company and multiple-step income statement for the company (including gross margin, pretax income, and earnings per share)
Reporting results Identify the greatest problems Virms is likely to have doing the audit
Evaluate ending inventory and cost of goods sold under each method, and then compare results.
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd