Zurich 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 12 Swiss francs (CHF) per child per hour. Financial results for the after-school care for a representative month are shown below, in CHF. 

The director of Zurich Day School is considering discontinuing the after-school 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 400 CHF a month to be used in the regular classes. 

1. Compute the financial impact on Zurich 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 @ 12 CHF per hour Less: 7,200 CHF Teacher salaries Supplies Depreciation Sanitary engineering Other fixed costs Operating income (loss) 5,200 CHF 800 1,300 100 200 7,600 (400) CHF