The Theater Arts Guild of Dallas (TAG-D) employs five people in its Publication Department. These people lay out pages for pamphlets, brochures, magazines, and other publications for the TAG-D 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 quoting a price of $15 per layout page. The budget for the Publication Department for the current year is as follows: Salaries $207,900 Benefits 47,300 Supplies 25,200 Office expenses 31,500 Office depreciation 28,400 Computer depreciation 18,900 Total $359,200 The department expects to lay out 21,000 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 February 22 to determine whether TAG-D should lay out pages internally (Alternative 1) or purchase layout services from the outside (Alternative 2). If an amount is zero, enter "0". For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Lay out Pages Internally (Alt. 1) or Purchase Lay out Services (Alt. 2) February 22 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 $fill in the blank 24d4a5f8afc4fc7_1 $fill in the blank 24d4a5f8afc4fc7_2 $fill in the blank 24d4a5f8afc4fc7_3 Salaries fill in the blank 24d4a5f8afc4fc7_4 fill in the blank 24d4a5f8afc4fc7_5 fill in the blank 24d4a5f8afc4fc7_6 Benefits fill in the blank 24d4a5f8afc4fc7_7 fill in the blank 24d4a5f8afc4fc7_8 fill in the blank 24d4a5f8afc4fc7_9 Supplies fill in the blank 24d4a5f8afc4fc7_10 fill in the blank 24d4a5f8afc4fc7_11 fill in the blank 24d4a5f8afc4fc7_12 Office expenses fill in the blank 24d4a5f8afc4fc7_13 fill in the blank 24d4a5f8afc4fc7_14 fill in the blank 24d4a5f8afc4fc7_15 Office depreciation fill in the blank 24d4a5f8afc4fc7_16 fill in the blank 24d4a5f8afc4fc7_17 fill in the blank 24d4a5f8afc4fc7_18 Computer depreciation fill in the blank 24d4a5f8afc4fc7_19 fill in the blank 24d4a5f8afc4fc7_20 fill in the blank 24d4a5f8afc4fc7_21 Income (loss) $fill in the blank 24d4a5f8afc4fc7_22 $fill in the blank 24d4a5f8afc4fc7_23 $fill in the blank 24d4a5f8afc4fc7_24

The Theater Arts Guild of Dallas (TAG-D) employs five people in its Publication Department. These people lay out pages for pamphlets, brochures, magazines, and other publications for the TAG-D 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 quoting a price of $15 per layout page. The budget for the Publication Department for the current year is as follows: Salaries $207,900 Benefits 47,300 Supplies 25,200 Office expenses 31,500 Office depreciation 28,400 Computer depreciation 18,900 Total $359,200 The department expects to lay out 21,000 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 February 22 to determine whether TAG-D should lay out pages internally (Alternative 1) or purchase layout services from the outside (Alternative 2). If an amount is zero, enter "0". For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Lay out Pages Internally (Alt. 1) or Purchase Lay out Services (Alt. 2) February 22 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 $fill in the blank 24d4a5f8afc4fc7_1 $fill in the blank 24d4a5f8afc4fc7_2 $fill in the blank 24d4a5f8afc4fc7_3 Salaries fill in the blank 24d4a5f8afc4fc7_4 fill in the blank 24d4a5f8afc4fc7_5 fill in the blank 24d4a5f8afc4fc7_6 Benefits fill in the blank 24d4a5f8afc4fc7_7 fill in the blank 24d4a5f8afc4fc7_8 fill in the blank 24d4a5f8afc4fc7_9 Supplies fill in the blank 24d4a5f8afc4fc7_10 fill in the blank 24d4a5f8afc4fc7_11 fill in the blank 24d4a5f8afc4fc7_12 Office expenses fill in the blank 24d4a5f8afc4fc7_13 fill in the blank 24d4a5f8afc4fc7_14 fill in the blank 24d4a5f8afc4fc7_15 Office depreciation fill in the blank 24d4a5f8afc4fc7_16 fill in the blank 24d4a5f8afc4fc7_17 fill in the blank 24d4a5f8afc4fc7_18 Computer depreciation fill in the blank 24d4a5f8afc4fc7_19 fill in the blank 24d4a5f8afc4fc7_20 fill in the blank 24d4a5f8afc4fc7_21 Income (loss) $fill in the blank 24d4a5f8afc4fc7_22 $fill in the blank 24d4a5f8afc4fc7_23 $fill in the blank 24d4a5f8afc4fc7_24

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Make-or-Buy Decision for a Service Company

Salaries	$207,900
Benefits	47,300
Supplies	25,200
Office expenses	31,500
Office depreciation	28,400
Computer depreciation	18,900
Total	$359,200

The department expects to lay out 21,000 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 February 22 to determine whether TAG-D should lay out pages internally (Alternative 1) or purchase layout services from the outside (Alternative 2). If an amount is zero, enter "0". For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Differential Analysis
Lay out Pages Internally (Alt. 1) or Purchase Lay out Services (Alt. 2)
February 22
	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	$fill in the blank 24d4a5f8afc4fc7_1	$fill in the blank 24d4a5f8afc4fc7_2	$fill in the blank 24d4a5f8afc4fc7_3
Salaries	fill in the blank 24d4a5f8afc4fc7_4	fill in the blank 24d4a5f8afc4fc7_5	fill in the blank 24d4a5f8afc4fc7_6
Benefits	fill in the blank 24d4a5f8afc4fc7_7	fill in the blank 24d4a5f8afc4fc7_8	fill in the blank 24d4a5f8afc4fc7_9
Supplies	fill in the blank 24d4a5f8afc4fc7_10	fill in the blank 24d4a5f8afc4fc7_11	fill in the blank 24d4a5f8afc4fc7_12
Office expenses	fill in the blank 24d4a5f8afc4fc7_13	fill in the blank 24d4a5f8afc4fc7_14	fill in the blank 24d4a5f8afc4fc7_15
Office depreciation	fill in the blank 24d4a5f8afc4fc7_16	fill in the blank 24d4a5f8afc4fc7_17	fill in the blank 24d4a5f8afc4fc7_18
Computer depreciation	fill in the blank 24d4a5f8afc4fc7_19	fill in the blank 24d4a5f8afc4fc7_20	fill in the blank 24d4a5f8afc4fc7_21
Income (loss)	$fill in the blank 24d4a5f8afc4fc7_22	$fill in the blank 24d4a5f8afc4fc7_23	$fill in the blank 24d4a5f8afc4fc7_24

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