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	$ 265,000	$ 402,000	$ 253,000
Variable expenses	471,000	113,000	208,000	150,000
Contribution margin	449,000	152,000	194,000	103,000
Fixed expenses:
Depreciation	69,600	8,300	40,900	20,400
Liability insurance	43,700	20,700	7,800	15,200
Program administrators salaries	115,900	40,000	38,900	37,000
General administrative overhead*	184,000	53,000	80,400	50,600
Total fixed expenses	413,200	122,000	168,000	123,200
Net operating income (loss)	$ 35,800	$ 30,000	$ 26,000	$ (20,200)

*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?