Saved 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: Revenues Variable expenses Contribution margin Fixed expenses: Depreciation Liability insurance Program administrators' salaries General administrative overhead* Total fixed expenses Net operating income (loss) *Allocated on the basis of program revenues. Total $ 918,000 465,000 453,000 Home Nursing $ 263,000 116,000 147,000 Meals On Wheels $ 405,000 190,000 215,000 House-keeping $ 250,000 159,000 91,000 70,300 8,700 40,700 20,900 44,100 20,700 7,800 15,600 114,400 40,600 38,300 35,500 183,600 52,600 81,000 50,000 412,400 122,600 167,800 122,000 $ 40,600 $ 24,400 $ 47,200 $ (31,000) The head administrator of Jackson County Senior Services, Judith Miyama, considers last year's net operating income of $40,600 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.