Jackson County Senior Services is a nonprofit organization devoted to providing

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. In the home nursing program, nurses visit seniors on a regular basis to check on their general health and to perform tests ordered by their physicians. The Meals On Wheels program delivers a hot meal once a day to each senior enrolled in the program. The housekeeping service provides weekly housecleaning and maintenance services. Data on revenue and expenses for the past year follow:

Explanation / Answer

If housekeeping is dropped

The negative sign shows the contribution lost, overall the company does not gain much by stopping house keeping since the fixed expenses continue to occur.

Original If Housekeeping is dropped Difference Revenues 929000 677000 -252000 Variable expense 460000 310000 150000 Contribution 469000 367000 -102000 Fixed Exp Depriciation 69900 49400 20500 Liabilty Insurance 43700 28000 15700 Administor Salary 115400 79600 35800 Admin Overhead 185800 185800 0 Totalexpenses 414800 342800 72000 Net income 54200 24200 -30000

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