Please help with requirement 1. Thank you! PLEASE NOTE: $94,800 and $27,400 are not correct answers.

Jackson County Senior Services is a nonprofit organization devoted to providing essential services to seniors who live in their own homes within the Jackson County area. Three services are provided for seniorshome nursing, Meals On Wheels, and housekeeping. Data on revenue and expenses for the past year follow:

Jackson County Senior Services is a nonprofit organization devoted to providing essential services to seniors who live in their own homes within the Jackson County area. Three services are provided for seniorshome nursing, Meals On Wheels, and housekeeping. Data on revenue and expenses for the past year follow:

	Total	Home Nursing	Meals On Wheels	House-keeping
Revenues	$ 917,000	$ 261,000	$ 403,000	$ 253,000
Variable expenses	475,000	113,000	208,000	154,000
Contribution margin	442,000	148,000	195,000	99,000
Fixed expenses:
Depreciation	68,900	8,300	40,300	20,300
Liability insurance	43,400	20,800	7,400	15,200
Program administrators salaries	114.900	40,600	38,200	36,100
General administrative overhead*	183,400	52,200	80,600	50,600
Total fixed expenses	410,600	121,900	166,500	122,200
Net operating income (loss)	$ 31,400	$ 26,100	$ 28,500	$ (23,200)

*Allocated on the basis of program revenues.

The head administrator of Jackson County Senior Services, Judith Miyama, considers last years net operating income of $to $31,400 be unsatisfactory; therefore, she is considering the possibility of discontinuing the housekeeping program.

The depreciation in housekeeping is for a small van that is 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 were 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?