Chapter 6 HW, Q 2, answer asap all parts

Return to question 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: Home Meals On House- Total Revenues Nursing Wheels keeping $ 927, 000 $ 263, 000 408, 000 $ 256, 000 Variable expenses 463, 000 118, 000 194, 000 151 000 Contribution margin 464, 000 145 , 000 214, 000 105 000 Fixed expenses: Depreciation 69, 500 8 , 400 40, 200 20, 900 Liability insurance 44, 000 20, 500 7,900 15, 600 Program administrators' salaries 115, 600 40, 300 38, 800 36 , 500 General administrative overhead* 185, 400 52, 600 81, 600 51, 200 Total fixed expenses 414 , 500 121, 800 168, 500 124 , 200 Net operating income ( loss) $ 49,500 $ 23, 200 $ 45, 500 $ (19, 200 ) `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 $49,500 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