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 Data on revenue and expenses for the past year follow: Home Meals On House- NursingWheelskeeping $920,000 $ 265,000 $401,000 $ 254,000 158,000 96,000 Total Revenues Variable expenses Contribution margin Fixed expenses: 479,000 115,000 206, 000 441,000 150,000 195,000 Depreciation Liability insurance Program administrators' salaries General administrative overhead* 20,400 16,000 35,600 50,800 122,800 $ 28,100 27,400 27,500 (26,800) 40,900 7,800 38,600 80,200 412,900 122,600 167,500 69,900 44,700 114,300 184,000 8, 600 20,900 40,100 53,000 Total fixed expenses Net operating income (loss) Allocated on the basis of program revenues The head administrator of Jackson County Senior Services, Judith Miyama, considers last year's net operating income of $28,100 to be unsatisfactory; therefore, she is considering the possibility of discontinuing the housekeeping program The depreciation in housekeeping 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. 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