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 $18 per layout page. The budget for the Publication Department for 2013 is as follows:

Salaries	$285,100
Benefits	64,800
Supplies	34,600
Office expenses	43,200
Office depreciation	38,900
Computer depreciation	25,900
Total	$492,500

The department expects to layout 24,000 pages for 2012. The computers used by the department have an estimated residual value of $17,300. The Publication Department office space would be used for future administrative needs, if the department's function were purchased from the outside.

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a. Prepare adifferential analysisdated 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)	$	$	$

b. On the basis of your analysis in part (a), should the page layout work be purchased from an outside company?

The input in the box below will not be graded, but may be reviewed and considered by your instructor.

c. What additional considerations might factor into the decision making?

The input in the box below will not be graded, but may be reviewed and considered by your instructor.