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	$ 262,000	$ 408,000	$ 250,000
Variable expenses	462,000	110,000	196,000	156,000
Contribution margin	458,000	152,000	212,000	94,000
Fixed expenses:
Depreciation	69,700	8,600	40,600	20,500
Liability insurance	43,300	20,700	7,200	15,400
Program administrators salaries	115,500	40,800	38,100	36,600
General administrative overhead*	184,000	52,400	81,600	50,000
Total fixed expenses	412,500	122,500	167,500	122,500
Net operating income (loss)	$ 45,500	$ 29,500	$ 44,500	$ (28,500)

*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?