The Theater Arts Guild of Miami (TAG-M) employs five people in its Publication Department. These people lay out 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 lay out work. The outside service is quoting a price of $20 per lay out page. The budget for the Publication Department for the current year is as follows:

Salaries	$237,600
Benefits	54,000
Supplies	28,800
Office expenses	36,000
Office depreciation	32,400
Computer depreciation	21,600
Total	$410,400

The department expects to lay out 18,000 pages for the current year. The Publication Department office space and equipment would be used for future administrative needs, if the department's function were purchased from the outside.

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

Differential Analysis
Lay out Pages Internally (Alt. 1) or Purchase Lay out Services (Alt. 2)
December 15
	Lay out Pages Internally (Alternative 1)	Purchase Lay out Services (Alternative 2)	Differential Effect on Income (Alternative 2)
Selling Price	$0	$0	$0
Costs:
Purchase price of lay out work	$	$	$
Salaries
Benefits
Supplies
Office expenses
Office depreciation
Computer depreciation
Income (loss)	$	$	$