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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
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 quoting a price of $14 per layout page. The budget for the Publication Department for the current year is as follows Salaries Benefits $194,000 44,100 23,500 29,400 26.500 17,600 5335,100 Office axpansas Office depreciation Computer depreciation Total The department expacts to lay out 21,000 pages for the currant year. The Publication Department office space and equipment would be usad for future administrative neads, if the departmant's function ware purchased from the outside a. 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. Lay out Pages Internally (Alt. 1) or Purchase Lay out Services (Alt. 2) Lay out Pages Internally (Alternative 1) Purchase Lay out Services (Alternative 2) Differential Effect on Income (Alternative 2) 50 Selling Price Costs 50 50 Purchase price of lay out wark Salaries Benefits Supplies Office expenses Office depreciation Income (loss)
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