Question
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 is quoting a price of $13 per layout page. The budget for the Publication Department for the current year is as follows: (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) (B) on the basis of your analysis in part a, should the page layout work be purchased from an outside company? (C) what additional considerations might factor into decision making? Budget for the year: Salaries..$224,000 benefits..36,000 Supplies..21,000 Office expenses..39,000 office depreciation..28000 computer depreciatikon..24,000 total: 372,000
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