{"id":18982,"date":"2020-12-05T11:34:31","date_gmt":"2020-12-05T11:34:31","guid":{"rendered":"http:\/\/onlineclassesguru.com\/?p=18982"},"modified":"2020-12-05T11:34:31","modified_gmt":"2020-12-05T11:34:31","slug":"what-is-the-impact-on-net-operating-income-by-discontinuing-housekeeping-program-input-the-amount-as-a-positive-value-omit-the-sign-in-your-response","status":"publish","type":"post","link":"https:\/\/onlineclassesguru.com\/index.php\/2020\/12\/05\/what-is-the-impact-on-net-operating-income-by-discontinuing-housekeeping-program-input-the-amount-as-a-positive-value-omit-the-sign-in-your-response\/","title":{"rendered":"What is the impact on net operating income by discontinuing housekeeping program? (Input the amount as a positive value. Omit the \u201c$\u201d sign in your response."},"content":{"rendered":"<style type=\"text\/css\"><\/style><h4>What is the impact on net operating income by discontinuing housekeeping program? (Input the amount as a positive value. Omit the \u201c$\u201d sign in your response.<\/h4>\n<p>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 seniorsAf?cAc\u201a\u00ac\u201dhome 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:<br \/>\nTotal Home Nursing Meals On Wheels House<br \/>\nkeeping<br \/>\nRevenues $ 900,000 $ 260,000 $ 400,000 $ 240,000<br \/>\nVariable expenses 490,000 120,000 210,000 160,000<br \/>\nContribution margin 410,000 140,000 190,000 80,000<br \/>\nFixed expenses:<br \/>\nDepreciation 68,000 8,000 40,000 20,000<br \/>\nLiability insurance 42,000 20,000 7,000 15,000<br \/>\nProgram administrators\u2019 salaries 115,000 40,000 38,000 37,000<br \/>\nGeneral administrative overhead* 180,000 52,000 80,000 48,000<br \/>\nTotal fixed expenses 405,000 120,000 165,000 120,000<br \/>\nNet operating income (loss) $ 5,000 $ 20,000 $ 25,000 $ (40,000)<br \/>\n*Allocated on the basis of program revenues.<br \/>\nThe head administrator of Jackson County Senior Services, Judith Miyama, is concerned about the organization\u2019s finances and considers the net operating income of $5,000 last year to be too small. (Last year\u2019s results were very similar to the results for previous years and are representative of what would be expected in the future.) She feels that the organization should be building its financial reserves at a more rapid rate in order to prepare for the next inevitable recession. After seeing the above report, Ms. Miyama asked for more information about the financial advisability of discontinuing the housekeeping program.<\/p>\n<p>The depreciation in housekeeping is for a small van that is used to carry the housekeepers and their equipment from job to job. If the program were discontinued, the van would be donated to a charitable organization. Depreciation charges assume zero salvage value. None of the general administrative overhead would be avoided if the housekeeping program were dropped, but the liability insurance and the salary of the program administrator would be avoided.<\/p>\n<p><center><a href=\"http:\/\/onlineclassesguru.com\/orders\/ordernow\"><img decoding=\"async\" src=\"https:\/\/encrypted-tbn0.gstatic.com\/images?q=tbn:ANd9GcTyj99p60XCLyLk1htB7-1neRt8-2QdnenNlQ&usqp=CAU\"target=\"_http:\/\/onlineclassesguru.com\/orders\/ordernow\"\/><\/center><p>","protected":false},"excerpt":{"rendered":"<p>What is the impact on net operating income by discontinuing housekeeping program? (Input the amount as a positive value. Omit the \u201c$\u201d sign in your response. 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&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-18982","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v17.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What is the impact on net operating income by discontinuing housekeeping program? (Input the amount as a positive value. Omit the \u201c$\u201d sign in your response. - onlineclassesguru<\/title>\n<meta name=\"description\" content=\"What is the impact on net operating income by discontinuing housekeeping program? (Input the amount as a positive value. 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