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 Nursing Wheels keeping Revenues Variable expenses 928,000 $ 268,000 406,000 $ 254,000 463,000 120,000 193,000 150,000 Contribution margin 465,000 148,000 213,000 104,000 Fixed expenses: Depreciation Liability insurance Program administrators salaries 115,600 41,000 38,800 35,800 General administrative overhead 185,600 53,600 81,200 50,800 68,500 8,100 40,200 20,200 43,800 20,800 7,700 15,300 Total foxed expenses 413,500 123,500 167900 122,100 Net operating income (loss) 51,500 24,500 $ 45,100 s (18,100) Allocated on the basis of program revenues The head administrator of Jackson County Senior Services, Judith Miyama, is concemed about the organization's finances and considers the net operating income of $51,500 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 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. 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-a. What is the impact on net operating income by disconsnuing housekeeping program? (Decreases should be Indicated by a minus sign.) Total If Operating Current Total Housekeeping Income Increase Is Dropped or (Decrease) Variable expenses Contribution margin Program administrators' salaries General administrative overhead Total fxed expenses Net operating income (loss) 1-b. Should the housekeeping program be discontinued