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 $205,900 Benefits 46,800 Supplies 25,000 Office expenses 31,200 Office depreciation 28,100 Computer depreciation 18,700 Total $355,700 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 the outside (Alternative 2). If an amount is zero, enter "0". For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Lay out Pages Internally (Alt. 1) or Purchase Layout Services (Alt. 2) February 22 Lay out Purchase Differential Pages Lay out Effect Internally Services on Income (Alternative 1) (Alternative 2) (Alternative 2) Sales price O V Costs: Purchase price of lay out work Salaries Benefits Supplies Office expenses Office depreciation Computer depreciation Income (loss) -327,700 X -312,000 X $ 15,700 X