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. 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 Home Nursing House- Meals On Wheels keeping $ 934,000 $264,000 $410,000 $260,000 118,000 194,000 152,000 464,000 470,000 146,000 216,000 108,000 69,200 8,600 40,400 20,200 44,300 21,000 7,800 15,500 114,000 40,600 38,300 35,100 186,800 52,500 82,000 52,000 414,300 123,000 168,500 122,800 $ 55,700 $ 23,000 $ 47,500 $(14,800) The head administrator of Jackson County Senior Services, Judith Miyama, considers last year's net operating income of $55,700 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.