Make-or-Huy 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, magarines, 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 $22 per layout page. The budget for the Publication Department for the current year is as follows: Salaries $348,500 Benefits 79,200 Supplies 42,200 Office expenses 52,800 Omce depreciation 47,500 Computer depreciation 31,700 Total $601,900 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 tayout pages intemany (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 Lay out Purchase Differential Pages Lay out Internally Services (Alternative 1) (Alternative 2) (Alternative 2) Sales price Costs: Purchase price of lay out works Effect on Income Presous Ned > Check My Work ang toucro Canging eBook 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 *o*. For those boxes in which you must enter subtracted or negative numbers use a minus on 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 layout work Salaries Benefits Supplies Omice expenses Office depreciation Computer depreciation Income (los) Feedback Check My Work a. For the make and buy alternatives provide the costs Determine the differential effect on income of the revenues, costs, and income by subtracting tomativetrom weative Previous Next