Geneva 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 16 per child per hour. Financial results for the after-school care for a representative month month are as follows: (Click the icon to view the financial results.) The director of Geneva American 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 CHF 1,200 a month to support regular classes. Read the requirements Requirements Requirement 1. Compute the financial impact on Geneva American School from discontinuing the after-school care program. Begin by classifying each cost as either avoidable or unavoidable. (Leave unused cells blank.) 1. Compute the financial impact on Geneva American School from discontinuing the after-school care program. 2. List three qualitative factors that would influence your decision. Avoidable Unavoidable Print Done Now determine the increase or decrease in operating income should the school discontinue the after-school care program. (Use a minus sign or parentheses for a decrease in operating income.) Decrease in costs CHF Less: Decrease in revenues Data table Increase (decrease) in operating income CHF Requirement 2. List three qualitative factors that would influence your decision. Revenue, 500 hours at CHF 16 per hour CHF 8,000 Qualitative factors to consider Less 1 CHF 5,900 2. 600 Teacher salaries Supplies Depreciation Sanitary engineering 3 1,900 Revenues from the after-school program fund capital expenditure needs of the school. 500 300 9,200 Other fixed costs Running the program results in a financial loss to the school (1,200) Operating income (loss) CHF The after-school care program might attract students to the regular program. The program provides additional compensation to teachers. There is a social need for such programs. Print Done