Check my we Cumberland County Senior Services is a non-profit organization devoted to providing essential services to seniors who live in their own homes within the Cumberland 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 Revenues Variable expenses Contribution margin Total $1,217,000 564,100 Home Nursing $293,800 138,200 Meals on Wheels $452, e90 242,500 House- keeping $271,200 183,400 452,900 155,600 289,500 87,800 Fixed expenses: Depreciation Liability insurance Program administrators salaries General administrative overhead 72,94e 46,810 123,450 203,400 9, e4e 21,950 43,250 58,760 41,950 8,300 39,95 90,400 21,950 16,560 40, 250 54,240 Total fixed expenses 446,600 133,000 180,600 133,000 Operating income (105) 6,300 $ 22,600 $ 28,900 $(45,200) "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 $6,300 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 Prev 1 of 4 !!! Next >