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Make-or-Buy Dedsion for a Service Company The Theater Arts Guild of Dallas (TAG-) employs ftve people in its Publication Department. These people layout pages for

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Make-or-Buy Dedsion for a Service Company The Theater Arts Guild of Dallas (TAG-) employs ftve people in its Publication Department. These people layout pages for pamphlets, brochures, magarines, and other publications for the TAG- 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 quoting price of $12 per layout page. The budget for the Publication Department for the current year is as follows: Salaries $150,500 Benefits 34,200 Supplies 18,200 Omce expenses 22,800 Office depreciation 20,500 Computer depreciation 13,700 Total $299,900 The department expects to lay out 19,000 pages for the current year. The Publication Department office space and equipment would be used for future administrative needs, or the department's function were purchased from the outside .. 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). If an amount is zero, enter "o". For those boxes in which you must enter subtracted or negative numbers use a minus sign The department expects to lay out 19,000 pages for the current year. The Publication Department office space and equipment would be used for future administrative needs, the department's function were purchased from the outside a. Prepare a differential analysis dated February 22 to determine whether TAG-Oshould lay out pages internally (Alternative 1) or purchase layout services from the outside (Alternative 2). If an amount is zero, enter "O" 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 Layout Pages Internally (Alternative 1) Purchase Layout Services (Altomotive 2) Differential effect on Income (Alternative 2) Selling Price $0 Costs: Purchase price of lay out work Salaries Benefits $0 30 Supplies Once expenses Office depreciation Computer depreciation imuni in Income (loss)

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