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	$ 926,000	$ 264,000	$ 405,000	$ 257,000
Variable expenses	480,000	116,000	205,000	159,000
Contribution margin	446,000	148,000	200,000	98,000
Fixed expenses:
Depreciation	69,700	8,700	40,500	20,500
Liability insurance	43,900	20,900	7,200	15,800
Program administrators salaries	116,100	40,900	38,700	36,500
General administrative overhead*	185,200	52,800	81,000	51,400
Total fixed expenses	414,900	123,300	167,400	124,200
Net operating income (loss)	$ 31,100	$ 24,700	$ 32,600	$ (26,200)

*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?