$(5)$

Jackson County Senior Services is a nonprofit organization providing three services to seniors who live in their own homes$-$home

nursing, Meals on Wheels, and housekeeping. Revenue and expense data for the past year follow.

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:

What is the financial advantage $($disadvantage$)$ of discontinuing the Housekeeping program? Should the Housekeeping program be

discontinued? Explain.