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	$ 921,000	$ 265,000	$ 403,000	$ 253,000
Variable expenses	474,000	114,000	206,000	154,000
Contribution margin	447,000	151,000	197,000	99,000
Fixed expenses:
Depreciation	69,700	8,300	40,700	20,700
Liability insurance	43,100	20,300	7,200	15,600
Program administrators salaries	115,000	40,000	38,500	36,500
General administrative overhead*	184,200	53,000	80,600	50,600
Total fixed expenses	412,000	121,600	167,000	123,400
Net operating income (loss)	$ 35,000	$ 29,400	$ 30,000	$ (24,400)

*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?