Labels and Amount Descriptions Differential Analysis B Instructions The Theater Arts Guild of Dallas (TAG-D) employs five people in its Publication Department. These people layout 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 $13.16 per layout page The budget for the Publication Department for the current year is as follows: Salaries $224,940 Benefits 35,805 Supplies 21,180 Office expenses 39,085 Office depreciation 28,185 Computer depreciation 24,095 Total $373,290 The department expects to lay out 23,000 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. Check My Work 3 more Check My Work uses remaining. Next > for future administrative needs, if the department's function were purchased from the outside. Required: A. Prepare a differential analysis dated February 22 to determine whether TAG-D should lay out pages internally (Alternative 1) or purchase layout services from the outside (Alternative 2). Refer to the lists of Labels and Amount Descriptions for the exact wording 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 "0". 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 and Amount Descriptions Labels Cash flows from operating activities Costs Amount Descriptions Benefits Cash payments for services Cash received from customers Computer depreciation Income (Loss) meck My Work 3 more Check My Work uses remaining. Next > layout services from the outside (Alternative 2). Refer to the lists of Labels and Amount Descriptions for the exact wording 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 "O". A colon () will 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 2 (Alternative 1) (Alternative 2) (Alternative 2) 3 (Label) 4 5 6 7 8 9 10 11 Check My Work 3 more Check My Work uses remaining. Next Final Questions B. On the basis of your analysis in part (A), should the page layout work be purchased from an outside company? The benefit from using an outside service is shown to be $18,330 than performing the layout work internally. The fixed costs (depreciation expenses) in the budget are to the decision. Thus, the work should purchased from the outside on a strictly financial basis. C. What additional considerations might factor into the decision making? The ability to more directly control the quality and timing of the layout work by internal employees All of these are important additional considerations Long-term employee morale Long-term employee productivity Check My Work 3 more Check My Work uses remaining, Next Assignment Score: 0.0% Email Instructor Submit Assignment for Grading