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 seniorshome nursing, Meals On Wheels, and housekeeping. Data on revenue and expenses for the past year follow:

	Total		Home Nursing		Meals On Wheels		House- keeping
Revenues	$	928,000	$	263,000	$	410,000	$	255,000
Variable expenses		465,000		116,000		194,000		155,000
Contribution margin		463,000		147,000		216,000		100,000
Fixed expenses:
Depreciation		69,900		8,500		40,500		20,900
Liability insurance		43,300		20,700		7,100		15,500
Program administrators salaries		115,400		40,300		38,200		36,900
General administrative overhead*		185,600		52,600		82,000		51,000
Total fixed expenses		414,200		122,100		167,800		124,300
Net operating income (loss)	$	48,800	$	24,900	$	48,200	$	(24,300)

*Allocated on the basis of program revenues.

The head administrator of Jackson County Senior Services, Judith Miyama, is concerned about the organizations finances and considers the net operating income of $48,800 last year to be too small. (Last years 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.)

(Click to select)Decrease/Increase in net operating income by

$