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Help!! Please correct those with a red x: Make-or-Buy Decision for a Service Company The Theater Arts Guild of Dallas (TAG-D) employs five people in
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Please correct those with a red x:
Make-or-Buy Decision for a Service Company The 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 $13 per layout page. The budget for the Publication Department for the current year is as follows: Salaries $224,000 Benefits 36,000 Supplies 21,000 Office expenses 39,000 Office depreciation 28,000 Computer depreciation 24,000 Total $372,000 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. a. Prepare a differential analysis dated February 22 to determine whether TAG-D should layout pages internally (Alternative 1) or purchase layout services from minus sign. the outside (Alternative 2). If an amount is zero, enter "0". For those boxes in which you must enter subtracted or negative numbers use Differential Analysis Lay Out Pages Internally (Alt. 1) or Purchase Layout Services (Alt. 2) February 22 Lay Out Purchase Differential Pages Layout Effect Internally Services on Income (Alternative 1) (Alternative 2) (Alternative 2) Sales price 9,000 X $ 9,000 x Costs: Purchase price of layout work $ -3,250,000 X -3,250,000 X Salaries -224,000 224,000 Benefits -36,000 36,000 -21,000 21,000 Supplies Office expenses Office depreciation -39,000 39,000 -28,000 -28,000 0 Computer depreciation -24,000 -24,000 0 Income (Loss) -372,000 -368,000 X $ 4,000 X
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