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 On House- keeplng $934,000 269,000 $ 408,000 257,000 159,000 98,000 Home Total Nursing Wheels Revenues Variable expenses Contribution margin Fixed expenses: 470,000 119,000 192,000 464,000 150,000 216, 000 Depreciation Liability insurance Program administrators' salaries General administrative overhead* 20,700 15,700 35,900 51,400 123,700 $49,200 26,900 48,000 (25,700) 40,300 7,400 38,700 81,600 414,800 123,100 168,000 69,400 43,400 115,200 186,800 8,400 20,300 40,600 53,800 Total fixed expenses Net operating income (loss) 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 $49,200 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