Answer:
He is taking the utilitarian approach to moral reasoning.
Step-by-step explanation:
The utilitarian approach to moral reasoning, or utilitarianism, is a theory in ethics that's concerned with the outcome of a certain action. If the benefits seem to be heavier than the harm on an ethical scale, that the action is worth doing. This approach is largely used in military and business. It can, for instance, justify a government's decision to go to war. The leaders of a country believe the outcome of the war will make up for the lives lost and the money spent.
That is the reasoning in the passage we were given to analyze. Losing some members as a harmful consequence caused by the increase does not seem that bad when compared to the benefits of keeping the club solvent.