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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

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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: Home Meals On House- Total Nursing Wheels keeping $929,000 $263,000 $409,000 $257,000 473,000 116,000 197,000 160,000 Revenues Variable expenses Contribution margin Fixed expenses 456,000 147,000 212,000 97,000 70,000 9,000 Liability insurance Program administrators' salaries General administrative overhead* 20,600 44,200 40,700 7,600 38,800 81,800 20,200 16,000 35,100 51,400 114,600 185,800 52,600 Total fixed expenses 414,600 122,900 169,000 22,700 Net operating income (loss) S 41,400 24,100 43,000 (25,700) Allocated on the basis of program revenues The head administrator of Jackson County Senior Services, Judith Miyama, is concened about the organization's finances and considers the net operating income of $41,400 last year to be too small. (Last year's results were very similar to the results for previous years and are representative of what would be expected in the future.) Therefore, she has asked for more information about the financial advisability of discontinuing the housekeeping program. The depreciation in housekeeping is for a van that transports 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 Required: 1a. What is the impact on net operating income by discontinuing housekeeping program? (Input the amount as a positive value.) Decrease in net operating income by

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