I I. UUlClll 1. Pro 'ections Difference If Continued If Discontinued $ $ Revenue 240,000 240,000 Variable Expense $ -160,000 $ -160,000 Contribution Margin Fixed Expense Depreciation Liability Insurance Program Administration Salaries General Administrative Overhead Total Fixed Expense Net Operating Income (Loss) Based on the calculations we have discovered; it is recommended that we rather continue the house keeping service line. Although it does produce a loss, continuing the operations can still cover up some of the losses compared to discontinuing the operations