St. Gallen American School is an international private elementary school. In addition to regular classes, after-school care is provided between 3:00 pm and 6:00 pm at CHF 10 per child per hour. Financial results for the after-school care for a representative month are as follows:

The director of St. Gallen American School is considering discontinuing the after-school care services because it is not fair to the other respondents to subsidize the after-school care program. He thinks that eliminating the program will free up CHF 1,300 a month to support regular classes.

1. Compute the financial impact on St. Gallen American School from discontinuing the after-school care program.

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

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Revenue, 750 hours at CHF 10 per hour Less CHR 7,500 Teacher salaries Supplies Depreciation Sanitary engineering Other fixed costs Operating income (loss) CHF 5,300 1,200 1,700 200 400 8,800 CHF (1,300)