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Jackson County Senior Services is a nonprofit organiztion 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: Home Meals On House- Total NursingWheels keeping 924,000 265,000 $406,000 253,000 473,000 117,000 206,000 150,000 451,000 148,000 200,000 103,000 Depreciation 69,500 8,700 40,700 20,100 43,200 20,100 7,400 15,700 116,400 41,000 38,700 36,700 50,600 413,900 122,800 168,000 123,100 s 37,100 s 25,200 $ 32,000 $(20,100) Liability insurance Program administrators' salaries General administrative overhead* 184,800 53,000 81,200 Total fixed expenses Net operating income (loss) 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 $37,100 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

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