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 $ 919,000 $ 262,000 $ 403,000 $ 254,000 Variable expenses 466,000 112,000 201,000 153,000 Contribution margin 453,000 150,000 202,000 101,000 Fixed expenses: Depreciation 69,700 8,100 40,700 20,900 Liability insurance 43,900 20,300 7,900 15,700 Program administrators salaries 115,100 41,000 38,400 35,700 General administrative overhead* 183,800 52,400 80,600 50,800 Total fixed expenses 412,500 121,800 167,600 123,100 Net operating income (loss) $ 40,500 $ 28,200 $ 34,400 $ (22,100) *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?

Jackson County Senior Services is a nonprofit organization providing three services to seniors who live in their own homes-home nursing, Meals on Wheels, and housekeeping. Revenue and expense data for the past year follow: *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 calelated in requirement Req 1A, should the Housekeeping program be discontinued? Complete this question by entering your answers in the tabs below. What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? Complete this question by entering your answers in the tabs below. Based on the financial advantage (disadvantage) of discontinuing the Housekeeping program calculated in requirement Req 1A, should the Housekeeping program be discontinued