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 $ 935,000 $ 269,000 Meals On Wheels $406,000 House- keeping $260,000 468,000 118,000 198,000 152,000 467,000 151,000 208,000 108,000 70,300 8,900 40,700 20,700 43,200 20,800 7,100 15,300 114,200 40,400 38,600 35,200 187,000 53,800 81,200 52,000 414,700 123,900 167,600 123,200 $ 52,300 $27,100 $40,400 $ (15,200) The head administrator of Jackson County Senior Services, Judith Miyama, considers last year's net operating income of $52,300 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.