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: Meals On Wheels House- keeping Revenues Variable expenses Contribution margin Fixed expenses: Depreciation Liability insurance Program administrators' salaries General administrative overhead Total fixed expenses Net operating income (loss) "Allocated on the basis of program revenues. Total $ 931,000 468,000 463,000 Home Nursing $ 266,000 119,000 147,000 $ 406,000 $ 259,000 195,000 211,000 154,000 105,000 69,500 8,600 40,300 20,600 43,800 20,700 7,500 15,600 115,300 40,500 38,800 36,000 186,200 53,200 81,200 51,800 414,800 123,000 167,800 124,000 $ 48,200 $ 24,000 $ 43,200 $ (19,000) The head administrator of Jackson County Senior Services, Judith Miyama, considers last year's net operating income of $48,200 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.