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: Total $1,053,000 Home Nursing Meals on Wheels House- keeping $304,200 $468,000 $280,800 Variable expenses) Contribution margin 586,900 466,100 160,400 143,800 252,500 190,600 215,500 90,200 Fixed expenses: Depreciation: 74,460 9,360 42,550 22,550 Liability insurance 48,290 22,550 8,700 17,040 Program administrators' salaries 126,050 44,250 40,550 41,250 General administrative overhead 210,600 60,840 93,600 56,160 Total fixed expenses 459,400 137,000 185,400 137,000 Operating income (loss) 6,700 $23,400 $30,100 $(46,800) 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 $6,700 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