Home Nursing $260,000 Meals on Wheels $400,000 Housekeeping $240,000 Revenues Total 5900,000 490.000 410,000 Variable expenses 120.000 160.000 210.000 190.000 140.000 _80.000 Contribution margin Fixed expenses: Depreciation 68,000 8,000 40,000 20,000 Liability insurance 42,000 20,000 7,000 15,000 Program administrators' salaries 115,000 40,000 38,000 37,000 General administrative overhead* 180,000 52.000 80.000 48.000 405,000 120.000 165.000 120.000 Total fixed expenses Operating income (loss) *Allocated on the basis of program revenues $5,000 $ 20,000 $ 25,000 $(40,000 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)