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Make-or-Boy Decision Wisconsin Arts of Milwaukee employs five people in its Publication Department. These people lay out pages for pamphlets, brochures, and other publications for

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Make-or-Boy Decision Wisconsin Arts of Milwaukee employs five people in its Publication Department. These people lay out pages for pamphlets, brochures, and other publications for the 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 $16 per layout page. The budget for the Publication Department is as follows: Salaries $189,000 Benefits 49,000 Supplies 28,000 Office expenses 24,000 Office depreciation 41,300 Computer depreciation 27,600 Total 5358.900 The department expects to lay out 28,700 pages. The computers used by the department have an estimated residual value of $10,400. The Publication Department office space would be used for future administrative needs if the department's function were purchased from the outside a. Prepare a differential analyel report for the make-or-buy decision, considering the differential revenues and costs. Enter differential revenues and cost savings as positive amountserter differential expenses and cost increases as negative amounts WISCONSIN ARTS OF MILWAUKEE Purchase Outside Page Layout Services Differential Analysis Report Offerential revenue Residual value of computer equipment Differential cost of alternatives Purchase price of layout work Number of page Price per o a. Prepare a differential analysis report for the make-or-buy decision, considering the differential revenues and costs. Enter differential revenues and cost savings as positive amounts; enter differential expenses and cost increases as negative amounts. WISCONSIN ARTS OF MILWAUKEE Purchase Outside Page Layout Services Differential Analysis Report Differential revenue: Residual value of computer equipment Differential cost of alternatives: Purchase price of layout work: Number of pages Price per page Total differential costs Cost to perform internally Salanes Benefits Supplies Office expenses Cost increase from purchasing outside layout services Net differential loss from using an outside service 0

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