Biotech’s promotion department is responsible for designing and developing all marketing campaign materials and related literature, pamphlets, and brochures. Management is reviewing the effectiveness of the promotion department to determine whether its services could be acquired more economically from an outside promotion agency. Management has received a summary of the promotion department’s costs for the most recent year:

PROMOTION DEPARTMENT Costs for the Year Ended November 30 De DantimMenCOStS eesexsleed tnettc tetat esonleionyres Ashe $128,750 Charges from other departments.............:::cccceeeeeeees 33,460 Allocated share of general administrative OVErNEAd............ccccceececeeseessseseeeeeeteeeees 22,125 TTOL AIKG OSES LEM Ree che natn ie akc inset deme ont Maas Sate todas $184,335 Department costs can be traced directly to promotion department activities such as staff and clerical salaries, including related employee benefits, supplies, and so on. Charges from other departments represent the costs of services that other departments of Biotech provide at the promotion department’s request. The company has developed a system to charge for such interdepartmental uses of services.

For instance, the in-house printing department charges the promotion department for the promotional literature printed. All services provided to the promotion department by other Biotech departments are included in the charges from other departments. General and administrative overhead includes costs such as executive salaries and benefits, depreciation, heat, insurance, and property taxes. These costs are allocated to each department in proportion to the number of its employees.

Required Prepare a report or visual presentation that explains the usefulness of the cost figures as presented for the promotion department as a basis to compare with a bid from an outside agency to provide the same type of activities that Biotech’s promotion department now provides