St. Teresa’s University is a well-known private university located in Kolkata, India. In addition to the regular courses, it also offers coaching classes for competitive examinations at a subsidized rate of ₹15,000 for a six-month term. The financial results for the coaching classes for the last six-month term are as follows:

The vice-chancellor of the university is considering discontinuing the coaching classes because it is not fair to the other students to subsidize the program. In his opinion, eliminating the program will free up ₹120,000 a month to support regular classes.

1. Compute the financial impact on the University of discontinuing the coaching classes for competitive examinations. 

2. List three qualitative factors that would influence your decision.

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Revenue @ ₹15,000 per student for 60 students Less: Teachers' remuneration Stationery Depreciation Overhead charges apportioned Operating income (loss) *600,000 50,000 100,000 270,000 €900,000 10,200,000 (120,000)