The Theater Arts Guild of Miami (TAG-M) employs five people in its Publication Department. These people layout pages for pamphlets, brochures, magazines, and other publications for the TAG-M 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 $20 per layout page. The budget for the Publication Department for 2013 is as follows:

Salaries	$290,400
Benefits	66,000
Supplies	35,200
Office expenses	44,000
Office depreciation	39,600
Computer depreciation	26,400
Total	$501,600

The department expects to layout 22,000 pages for 2012. The computers used by the department have an estimated residual value of $17,600. The Publication Department office space would be used for future administrative needs, if the department's function were purchased from the outside.

prepare a differential analysis dated December 15, 2012, to determine whether TAG-M should layout pages internally (Alternative 1) or purchase layout services from the outside (Alternative 2). If an amount is zero, enter zero "0".

Differential Analysis
Layout Pages Internally (Alt. 1) or Purchase Layout Services (Alt. 2)
December 15, 2012
		Layout Pages Internally (Alternative 1)		Purchase Layout Services (Alternative 2)		Differential Effect on Income (Alternative 2)
Revenues:
Salvage of computer equipment		$		$		$
Costs:
Purchase price of layout work
Salaries
Benefits
Supplies
Office expenses
Office depreciation
Computer depreciation
Income (loss)		$		$		$