Wisconsin Arts of Milwaukee employs five people in its Publication Department. These people lay out pages for pamphlets, brochures, and other publications for the production. 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 $21.00 per layout page. The budget for the Publication Department is as follows:

Salaries	$188,000
Benefits	47,000
Supplies	33,000
Office expenses	21,000
Office depreciation	67,700
Computer depreciation	45,100
Total	$401,800

The department expects to lay out 35,800 pages. The computers used by the department have an estimated residual value of $30,100. The Publication Department office space would be used for future administrative needs if the department's function were purchased from the outside.

a. Prepare a differential analysis report for the make-or-buy decision, considering the differential revenues and costs.

WISCONSIN ARTS OF MILWAUKEE Purchase Outside Page Layout Services Differential Analysis Report

Differential revenue:
Residual value of computer equipment		$fill in the blank 0bc69304cfb5ff8_1
Differential cost of alternatives:
Purchase price of layout work:
Number of pages	fill in the blank 0bc69304cfb5ff8_2
Price per page	$fill in the blank 0bc69304cfb5ff8_3
Total differential costs		$fill in the blank 0bc69304cfb5ff8_4
Cost to perform internally:
Salaries	$fill in the blank 0bc69304cfb5ff8_5
Benefits	fill in the blank 0bc69304cfb5ff8_6
Supplies	fill in the blank 0bc69304cfb5ff8_7
Office expenses	fill in the blank 0bc69304cfb5ff8_8	fill in the blank 0bc69304cfb5ff8_9
Cost increase from purchasing outside layout servicesCost savings from purchasing outside layout servicesCost increase from purchasing outside layout services		$Cost increase from purchasing outside layout services
Net differential income from using an outside serviceNet differential loss from using an outside serviceNet differential loss from using an outside service		$Net differential loss from using an outside service