Musial Sports is a nonprofit recreational center that offers three outstanding programs during the summer: sports camp, sports clinic and sports aftercare. The president of the board of directors, Joseph Javier is concerned about the latest statement of income for the summer programs found below. He asks Controller Jamila Jaden to explain why she is allowing the sports aftercare to continue. Note the Center Director will continue on regardless of the After Care decision. The variable costs and traceable fixed costs (maintenance and Utilities will be reduced if the a cost center can be eliminated. Total Sports Camps Sports Clinics Sports Aftercare Revenue $931,000 $267,000 $406,000 $258,000 Variable Costs $315,000 $100,000 $149,000 $18,000 $464,000 $118,000 $110,000 $82,000 $192,000 $105,000 $49,000 $154,000 Counselor Salaries Food and Materials Total Variable Costs Contribution Margin $467,000 $149,000 $214,000 $104,000 Fixed Expenses Center Director Maintenance Staff (traceable) Utilities (traceable) Allocated Common Fixed Expenses $186,200 $53,400 $115,000 $32,981 $43,000 $20,200 $69,900 $8,700 $50,150 $7,700 $40,600 $81,200 $31,869 $15,100 $20,600 $51,600 Total Fixed Expenses $414,100 $115,281 $179,650 $119,169 Net Operating Income (Loss) $52,900 $33,719 $34,350 ($15,169) Allocated Based on Revenue