PROBLEM 1-20 Variable and Fixed Costs: Subtleties of Direct and Indirect Costs LO1-1, LO1-4 Madison Seniors Care Center is a nonprofit organization that provides a variety of health ser- vices to the elderly. The center is organized into a number of departments, one of which is the Meals-On-Wheels program that delivers hot meals to seniors in their homes on a daily basis. Below are listed a number of costs of the center and the Meals-On-Wheels program. example The cost of groceries used in meal preparation. a. The cost of leasing the Meals-On-Wheels van. m b. The cost of incidental supplies such as salt, pepper, napkins, and so on. c. The cost of gasoline consumed by the Meals-On-Wheels van. d The rent on the facility that houses Madison Seniors Care Center, including the Meals-On-Wheels program e. The salary of the part-time manager of the Meals-On-Wheels program. f Depreciation on the kitchen equipment used in the Meals-On-Wheels program. g. The hourly wages of the caregiver who drives the van and delivers the meals. h. The costs of complying with health safety regulations in the kitchen. s i The costs of mailing letters soliciting donations to the Meals-On-Wheels program