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 $ 927,000 462,000 Home Nursing $267,000 Meals On Wheels $401,000 House- keeping $ 259,000 112,000 194,000 156,000 465,000 155,000 207,000 103,000 69,000 8,600 40,100 20,300 43,600 20,600 7,300 15,700 115,200 40,100 38,400 36,700 185,400 53,400 80,200 51,800 413,200 122,700 166,000 124,500 $ 51,800 $ 32,300 $ 41,000 $ (21,500) The head administrator of Jackson County Senior Services, Judith Miyama, considers last year's net operating income of $51,800 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.