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Nake-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

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Nake-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 poge. The budget for the Publication Department for the current year is as follows: The department expects to lay out 19,000 pages for the current yeag. 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. Preparr a differential analysis dated February 22 to determine whether TAG-D should layout pages internally (Alternative 1) or purchase iayout services from the outside (Alternative 2), If an amount is zero, enter " 0 ". For those boxns 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) 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 ibyout pages intemally (Alternathe 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 b. The benefit from using an outside service is shown to be in the budget are c. Before electing to to the decision. Thus, the work should the flve employees, the Gulld sheuld consider the than performing the loyout work internally. The fixed costs (depreciation expenses) purchased from the outside en a stricty financial bosis

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