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Cumberland County Senior Services is a non-profit organization devoted to providing essenttal services to seniors who ive in their own homes within the Cumberiand County

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Cumberland County Senior Services is a non-profit organization devoted to providing essenttal services to seniors who ive in their own homes within the Cumberiand County area. Three services are provided for seniors-home nursing. Meais 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 Meats on Wheels program delivers a hot meat once a day to each senior entolled in the program. The housekeeping service provides weekly housecleaning and maintenance services. Data on revenue and expenses for the past year follow: "Allocated on the basis of program revenuem The head administrator of Cumberland County Senior Services, Judith Ewa, is concemed about the organizatlon's finances and considers the operating income of $5,700 last year to be razor thin. (Last year's resuits were very sumillar to the results for previous years and are represeritative of what would be expected in the future.) She teels thot the organization should be bulding its financhal retierves at a more rapud rate in order to prepare for the next inevitable recesston. After seeing the above report, Ewa asked for more information about the financial advisability of discontinuing the housekeeping program The depreciation in the housekeeping category is for a smail van that is used to carry the housekeepers and thetr equtpment from job to job. If the program were discontenued, the van would be donoted to a chartable organtration. Depreciation charges assume zero Lalvage value None of the general administrative ovemead would be awolded if the housekeeping program were dropped, but the liability inturance and the salary of the program adminkstrotor would be avolded. Requlred: 1.a. Compute the change in net operating income for the company as a whole if housekeeping program be discontinued

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