Question: Deletion of Product Line 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 students 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.