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	$ 918,000	$ 265,000	$ 402,000	$ 251,000
Variable expenses	470,000	110,000	208,000	152,000
Contribution margin	448,000	155,000	194,000	99,000
Fixed expenses:
Depreciation	69,500	8,800	40,200	20,500
Liability insurance	43,200	20,600	7,400	15,200
Program administrators salaries	114,900	40,600	38,700	35,600
General administrative overhead*	183,600	53,000	80,400	50,200
Total fixed expenses	411,200	123,000	166,700	121,500
Net operating income (loss)	$ 36,800	$ 32,000	$ 27,300	$ (22,500)

*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?