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) Total Home Nursing $ 924,000 466,000 458,000 $ 269,000 118,000 151,000 Meals On Wheels $ 401,000 191,000 210,000 House- keeping $ 254,000 157,000 97,000 69,400 8,700 40,100 20,600 43,400 20,700 7,100 15,600 114,500 40,000 38,400 36,100 184,800 53,800 80,200 50,800 412,100 123,200 165,800 123,100 $ 45,900 $ 27,800 $ 44,200 $ (26,100) *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 $45,900 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.