The Arts Guild of Texas (TAG-D) employs 5 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	$224,000
Benefits	36,000
Supplies	20,000
Office expenses	40,000
Office Depreciation	28,000
Computer equipment depreciation	24,000
Total	$372,000

The department expects to lay out 24,000 pages for the current year. The Publication Department office space and computer equipment would be used for future administrative needs, if the departments function were purchased from the outside.

Required:

1. Identify and explain which items are relevant and which are irrelevant.
2. Prepare a differential analysis to determine if TAG-D should lay out pages internally or purchase layout services from the outside.
3. What are two additional considerations that may affect the decision-making?