Head Gasket and A/C for W-124

I just took my '91 300E in this morning to have it looked at for an oil drip that I noticed on my garage floor and my air-conditioning has stopped blowing cold air. The mechanic gave me estimates of $1600 to do the head gasket and $1200 to replace the compressor. does anyone had advice for me? My car has 225,000 miles and that seems a lot to spend.