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answer please Revenues Variable expenses Total $1,826,880 569,880 Home Nursing $296,400 139,609 Meals on Wheels $456,000 245,899 House- keeping $273,600 185,200 Contribution margin 456,200 156,889

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Revenues Variable expenses Total $1,826,880 569,880 Home Nursing $296,400 139,609 Meals on Wheels $456,000 245,899 House- keeping $273,600 185,200 Contribution margin 456,200 156,889 211,000 88,400 Fixed expenses: Depreciation Liability insurance Program administrators' salaries General administrative overhead* 73,320 47,180 124, 180 205,200 9,129 224189 43,500 59,280 42,100 8,400 40, 100 91,200 22,100 16,689 40,500 54,720 Total fixed expenses 449,800 134,00 181,800 134,000 Operating income (loss) $ 6,400 $ 22,800 $ 29,200 $(45,680) "Allocated on the basis of program revenues. The head administrator of Cumberland County Senior Services, Judith Ewa, is concerned about the organization's finances and considers the operating income of $6,400 last year to be razor-thin (Last year's results were very similar to the results for previous years and are representative of what would be expected in the future} She feels that the organization should be building its financial reserves at a more rapid rate in order to prepare for the next inevitable recession. After seeing the above report, Ewa asked for more information about the financial advisability of discontinuing the housekeeping program. The depreciation in the housekeeping category 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 Depreciation charges assume zero salvage value. 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. Required: 1-a. Compute the change in net operating income for the company as a whole if housekeeping program be discontinued. Innetoperating income by

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