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 $19 per layout page. The budget for the Publication Department for the current year is as follows:
Salaries$250,800Benefits57,000Supplies30,400Office expenses38,000Office depreciation34,200Computer depreciation22,800Total$433,200
P) Music and Podcasts, Free ar X CengageNOWv2 | Online teachin X Course Hero X New tab X + X C @ https://v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false . . Ch. 25, Quiz B 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 $19 per layout page. The budget for the Publication Department for the current year is as follows: Salaries $250,800 Benefits 57,000 Supplies 30,400 Office expenses 38,000 Office depreciation 34,200 Computer depreciation 22,800 Total $433,200 The department expects to lay out 20,000 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) Type here to search O 9:48 PM 38 850F ~ 8/8/2021 741P) Music and Podcasts, Free ar X CengageNOWv2 | Online teachin X Course Hero X New tab X + X C @ https://v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false . . Ch. 25, Quiz B 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 $ Costs: Purchase price of lay out work $ Salaries Benefits Supplies Office expenses Office depreciation Computer depreciation Income (loss) b. The benefit from using an outside service is shown to be than performing the layout work internally. The fixed co OneDrive X to the decision. Thus, the work should purchased from the outside on a strictly financial basis. Screenshot saved c. Before electing to the five employees, the Guild should consider the of the decision. The screenshot was added to your OneDrive. 9:48 PM Type here to search O 38 85.F 8/8/2021 741
