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 $ 924,000 461,000 Home Nursing $ 265,000 Meals On Wheels $ 403,000 House- keeping $ 256,000 117,000 194,000 150,000 463,000 148,000 209,000 106,000 69,400 8,200 40,600 20,600 44,600 20,900 7,900 15,800 115,500 40,300 38,200 37,000 184,800 53,000 80,600 51,200 414,300 122,400 167,300 124,600 $ 48,700 $ 25,600 $ 41,700 $ (18,600) The head administrator of Jackson County Senior Services, Judith Miyama, considers last year's net operating income of $48,700 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 I would be avoided.