Problem 13-19 (Algo) Dropping or Retaining 3 Segment [LO13-2] 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 seniorshome nursing, Meals On Wheels, and housekeeping. Data on revenue and expenses for the past year follow: Home Meals On House Total Nurs ing Wheels keeping Revenues S 931,000 5 261,000 5 410,000 $ 260, 000 Variable expenses 471,000 118,000 202,000 151, 000 Contribution margin 460,000 143,000 208,000 109, 000 Fixed expenses: Depreciation 69,300 8,700 40,200 20,400 Liability insurance 43,400 20,500 7,500 15,400 Program administrators' salaries 114,700 40,500 38,600 35, 600 General administrative overhead* 186,200 52,200 82,000 52, 000 Total fixed expenses 413,600 121,900 168,300 123,400 Net operating income (loss) S 46,400 S 21,100 S 39,700 S (14,400) \"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 $46,400 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 tojob. 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 ofthe program administrator would be avoided