Ch 7 HW 200 points 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 In the home nursing program, nurses visit seniors on a regular basis to check on their general health and to perform tests ordered by their physicians. The Meals on Wheels program delivers a hot meal once a day to each senior enrolled in the program. The housekeeping service provides weekly housecleaning and maintenance services. Data on revenue and expenses for the past year follow Meals on House 928,000 266,000 404,000 S 258,000 Variable expenses 473,000 114,000 206,000 153,000 Contribution margin 455,000 152,000 198,000 105,000 Fixed expenses: 70.200 8,500 40,800 20900 5,500 Liability insurance 43,900 20,700 7,700 rogram administrators' salaries 115.900 40,400 38,600 36,900 General administrative overhead' 185,600 53,200 80,800 51.600 Total fixed expenses 415,600 122,800 167,900 124,900 Net operating income (loss) 39,400 s 29,200 s 30,100 (19,900 Allocated on the basis of program revenues The head administrator of Jackson County Senior Services. Judith Miyama, concerned about the results were very and the net is be too small, (Last similar operating income of $39,400 last year expected to the results for previous years and are representative of what woul rapid rate in the future. She feels that the organization should be building its financial reserves at a more asked for in order to prepare for the next inevitable recession, After seeing the above report. Ms Miyama more information about the financial advisability of discontinuing the housekeeping program The depreciation in for small to their organization Depreciation If the program were discontinued the van would be donated to a charitable would be charges assume zero salvage value None of the general administrative salary avoided if the program were dropped, but the liability insurance and the of the program administrator would be avoided O Ask me anything Questio