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 $ 924,000 480,000 444,000 Home Nursing $ 267,000 116,000 151,000 Meals On Wheels $ 407,000 209,000 198,000 House- keeping $ 250,000 155,000 95,000 Revenues Variable expenses Contribution margin Fixed expenses Depreciation Liability insurance Program administrator salaries General administrative overhead Total fixed expenses Net operating incono (1000) 70,300 43,300 114,800 184,800 413,200 $ 30,800 8,800 20,600 40,100 53,400 122,900 $ 28,100 40,600 7.500 38,600 81,400 168, 100 $ 29,900 20,900 15,200 36,100 50,000 122,200 $ (27,200) "Allocated on the basis of program revenues. The head administrator of Jackson County Senior Services, Judith Miyomo, considers last year's net operating income of $30,800 to be unsatisfactory, therefore, she is considering the possibility of 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. 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 Reg 28 What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? Total Home Nursing Meals On Wheels House- keeping 15 Revenues Variable expenses Contribution margin Traceable fixed expenses Depreciation Liability insurance Program administrators' salaries Total traceable fixed expenses Program segment margins General administrative overhead Net operating income (loss)