. 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 22,500 Differential cost of alternatives: Purchase price of layout work: Number of pages 31,300 V Price per page 18 Total differential costs 563,400 Cost to perform internally: Salaries 184,000 Benefits 51,000 Supplies 27,000 Office expenses 20,000 282,000 Cost increase from purchasing outside layout services 303,900 X Net differential loss from using an outside service
. 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 22,500 Differential cost of alternatives: Purchase price of layout work: Number of pages 31,300 V Price per page 18 Total differential costs 563,400 Cost to perform internally: Salaries 184,000 Benefits 51,000 Supplies 27,000 Office expenses 20,000 282,000 Cost increase from purchasing outside layout services 303,900 X Net differential loss from using an outside service
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:. 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
22,500
Differential cost of alternatives:
Purchase price of layout work:
Number of pages
31,300 V
Price per page
18
Total differential costs
563,400
Cost to perform internally:
Salaries
184,000
Benefits
51,000
Supplies
27,000
Office expenses
20,000
282,000
Cost increase from purchasing outside layout services
303,900 X
Net differential loss from using an outside service
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