Ethos Day School is a private elementary school. In addition to regular classes, after-school care is provided between 3:00 p.m. and 6:00 p.m. at SF12 per child per hour. Financial results for the after-school care for a representative month are shown, in Swiss Francs.

The director of Ethos Day School is considering discontinuing the afterschool care services because it is not fair to the other students to subsidize the after-school care program. He thinks that eliminating the program will free up SF400 a month to be used in the regular classes.
1. Compute the financial impact on Ethos Day School from discontinuing the after-school care program.
2. List three qualitative factors that would influence your decision.

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Revenue, 600 hours SF12 per hour SF7,200 Less: Teacher salaries Supplies SF5,200 800 Amortization 1,300 Sanitary engineering 100 Other fixed costs 200 7,600 Operating income (loss) SF (400)