Jackson County Senior Services is a nonprofit organization providing three services to seniors who live in their own homeshome nursing, Meals on Wheels, and housekeeping. Revenue and expense data for the past year follow:

	Total	Home Nursing	Meals on Wheels	Housekeeping
Revenues	$ 920,000	$ 267,000	$ 400,000	$ 253,000
Variable expenses	465,000	114,000	199,000	152,000
Contribution margin	455,000	153,000	201,000	101,000
Fixed expenses:
Depreciation	69,800	8,500	40,800	20,500
Liability insurance	44,300	21,000	7,900	15,400
Program administrators salaries	115,900	40,600	39,000	36,300
General administrative overhead*	184,000	53,400	80,000	50,600
Total fixed expenses	414,000	123,500	167,700	122,800
Net operating income (loss)	$ 41,000	$ 29,500	$ 33,300	$ (21,800)

*Allocated on the basis of program revenues.

The head administrator of Jackson County Senior Services, Judith Miyama, is considering discontinuing the housekeeping program.

The depreciation in housekeeping is for a small van 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 was 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?