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. Revenues Variable expenses Contribution margin Fixed expenses: Depreciation Liability insurance Program administrators' salaries General administrative overhead Total fixed expenses Net operating income (loss) "Allocated on the basis of program revenues. Total $ 917,000 468,000 Home Nursing $263,000 Meals On Wheels $ 403,000 114,000 203,000 House- keeping $ 251,000 151,000 449,000 149,000 200,000 100,000 69,800 8,700 40,100 21,000 43,400 21,000 7,300 15,100 114,900 40,700 38,000 36,200 183,400 52,600 80,600 50,200 411,500 123,000 166,000 122,500 $ 37,500 $ 26,000 $ 34,000 $ (22,500) The head administrator of Jackson County Senior Services, Judith Miyama, considers last year's net operating income of $37,500 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. Required: 1-a. What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? 1-b. Based on the financial advantage (disadvantage) of discontinuing the Housekeeping program calculated in requirement Req 1A, should the Housekeeping program be discontinued?