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: Meals On House- Nursing Wheels keeping $ 923,000 265,000 $407,000 $ 251,000 158,000 93,000 Home Total Revenues Variable expenses Contribution margin Fixed expenses: 480,000 443,000 115,000 150,000 207,000 200,000 40,200 7,700 38,300 81,400 167,600 Depreciation 20,200 15,900 35,400 50,200 121,700 $ 31,10 27,400$ 32,400 $(28,700) 69,100 44,000 114,200 184,608 411,900 8,700 20,400 40,500 53,000 122,600 Liability insurance Program administrators' salaries General administrative overhead* 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 $31,100 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