27-28 Housekeeping Meals on Wheels Total Home Nursing $240,000 $260,000 $400,000 Revenues 5900,000 210,900 160.900 Variable expenses 490.000 120.000 20.000 Contribution margin 410,000 140,000 190,090 Fixed expenses: Depreciation 40,000 20,000 68,000 8.000 Liability insurance 42,000 20,000 7,000 15,000 Program administrators' salaries 115,000 40,000 38,000 37,000 General administrative overhead* 180.900 52,000 80.900 48 000 Total fixed expenses 405.000 120.000 165,000 120.000 Operating income (loss) $ 5.000 S 20,000 $ 25,000 5(40,000) *Allocated on the basis of program revenues From the data in the above table: 27) The Housekeeping department should be dropped - True or False? 28) If they dropped it, Income would: (multiple choice: increase by _, decrease by _, stay the same)