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e Theater Arts Guild of Dallas (TAG-D) employs five people in its Publication Department. These people lay out pages for pamphlets, brochures, magazines, and other
e Theater Arts Guild of Dallas (TAG-D) employs five people in its Publication Department. These people lay out pages for pamphlets, brochures, magazines, and other publications for the TAG-D productions. The pages are delivered to an outside company for printing. The company is considering an outside publication service for the layout work. The outside service is quoting a price of S12.89 per layout page. The budget for the Publication Department for the current year is as follows $224,000 35,870 20,875 Salaries Benefits Supplies Office expenses 38,860 Office depreciation 28,180 Computer depreciation 24,040 Total 5371,805 The department expects to lay out 24.000 pages for the current year. The Publication Department office space and equipment would be used for future administrative needs, if the department's function were purchased from the outside. Required: a. Prepare a dlifferential analysis dated February 22 to determine whether TAG-D should lay out pages internally Altemative 1) or purchase layout services from the outside (Altenative 2). Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for fexf entries. For those baxes in which you must enter subtracted or negative numbers use a minus sign. If there is no amount or an amount is zero, enter " A colon ) will automatically appear if required b. On the basis of your analysis in part (a), should the page layout work be purchased from an outside company? c. What additional considerations might factor into the decision making Labels Cash flows from operating activities Costs Benefits Cash payments for services Cash received from customers Computer depreciation Income (loss) Office depreciation Office expenses Purchase price of layout work Revenues Salaries Supplies a Prepare a dlifferential analysis dated February 22 to determine whether TAG-D should lay out pages internally (Alternative 1) or purchase layout services from the outside (Altenative 2). Refer to the lists of Labels and Amount Descriptions for the exact wordling of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If there is no amount or an amount is zero, enter D" A colon () wil automatically appear if required. Differential Analysis Lay Out Pages Internally (Alternative 1) or Purchase Layout Services (Alternative 2 February 22 Lay Out Pages Internally Purchase Layout Services Differential Effect on Income (Alternative 1) Alternative 2) Alternative 2) 4 Label) :2
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