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 $ 935,000 473,000 462,000 $ 269,000 117,000 152,000 Meals On Wheels $ 408,000 203,000 205,000 House- keeping $ 258,000 153,000 105,000 69,700 8,800 40,300 20,600 43,800 20,100 7,800 15,900 114,000 40,400 38,300 35,300 187,000 53,800 81,600 51,600 414,500 123,100 168,000 123,400 $ 47,500 $ 28,900 $ 37,000 $ (18,400) *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 $47,500 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.