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 $ 930,000 480,000 450,000 Home Nursing $ 269,000 115,000 154,000 Meals On Wheels $ 407,000 House- keeping $ 254,000 209,000 156,000 198,000 98,000 69,200 8,500 40,400 20,300 44,200 20,900 7,500 15,800 115,000 40,700 38,600 35,700 186,000 53,800 81,400 50,800 414,400 123,900 167,900 122,600 $ 35,600 $ 30,100 $ 30,100 $ (24,600) The head administrator of Jackson County Senior Services, Judith Miyama, considers last year's net operating income of $35,600 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.