GMAT Critical Reasoning (CR) | Re: In 2009, a private school spent $200,000 on a building which

I have a query regarding the option E. The argument states that a number of new students have joined because of the school's new building. However, the school was unable to earn a profit. So, in spite of new students, the school failed to earn profit. Doesn't it mean that the principal in responsible? Thus, this strengthens the grounds for suspension.
I also don't understand why the OE mentions that choice E suggests that revenue will continue to increase