1 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 seniors-home nursing. Meals On Wheels, and housekeeping Data on revenue and expenses for the past year follow: Home Meals On House- Total Nursing Wheels keeping $921,000 $265,000 $400,000 $256,000 469,000 114,000 204,000 452,000 151,000 151,000 196,000 105,000 Revenues Variable expenses Contribution margin Fixed expenses: Depreciation Liability insurance Program administrators' salaries General administrative overhead" Total fixed expenses Net operating income (loss) "Allocated on the basis of program revenues. 70,300 8,900 40,600 20,800 44, 200 20, 800 7,900 15,500 114,100 40, 200 38.200 35,700 184, 2001 53,000 80,000 51,200 412, 800 122,000 166, 700 123,200 $ 39,200 $ 20, 100 $ 29,300 $(18,200) The head administrator of Jackson County Senior Services, Judith Miyama, considers last year's net operating income of $39,200 to 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.