Total $652,100 The department expects to lay out 26,000 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 (Alternative 2). If an amount is zero, enter "0". For those boxes in which you must enter subtracted or negative numbers minus sign. Differential Analysis Lay out Pages Internally (Alt. 1) or Purchase Layout Services (Alt. 2) February 22 Lay out Purchase Differential Pages Internally Lay out Effects Services (Alternative 1) (Alternative 2) (Alternative 2) Unit costs: Purchase price of lay out work $ Salaries Benefits Supplies Office expenses Office depreciation Computer depreciation Total unit costs b. The benefit from using an outside service is shown to be v than performing the layout work internally. The fixed costs (depreciation expenses) in the budget are to the decision. Thus, the work should v purchased fre outside on a strictly financial basis. c. Before electing to the five employees, the Guild should consider the of the decision.
Total $652,100 The department expects to lay out 26,000 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 (Alternative 2). If an amount is zero, enter "0". For those boxes in which you must enter subtracted or negative numbers minus sign. Differential Analysis Lay out Pages Internally (Alt. 1) or Purchase Layout Services (Alt. 2) February 22 Lay out Purchase Differential Pages Internally Lay out Effects Services (Alternative 1) (Alternative 2) (Alternative 2) Unit costs: Purchase price of lay out work $ Salaries Benefits Supplies Office expenses Office depreciation Computer depreciation Total unit costs b. The benefit from using an outside service is shown to be v than performing the layout work internally. The fixed costs (depreciation expenses) in the budget are to the decision. Thus, the work should v purchased fre outside on a strictly financial basis. c. Before electing to the five employees, the Guild should consider the of the decision.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:The Theater Arts Guild of Dallas (TAG-D) employs 5 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 is quoting a price of $22 per layout page. The budget for the Publication Department for the current year is as follows:
Salaries
$377,500
Benefits
85,800
Supplies
45,800
Office expenses
57,200
Office depreciation
51,500
Computer depreciation
34,300
Total
$652,100
The department expects to lay out 26,000 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 (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 Layout Services (Alt. 2)
February 22
Lay out
Purchase
Differential
Pages
Lay out
Effects
Internally
Services
(Alternative 2)
(Alternative 1) (Alternative 2)
Unit costs:
Purchase price of lay out work
Salaries
Benefits
Supplies
Office expenses
Office depreciation
Computer depreciation
Total unit costs
b. The benefit from using an outside service is shown to be
than performing the layout work internally. The fixed costs (depreciation expenses) in the budget are
to the decision. Thus, the work should
purchased from the
outside on a strictly financial basis.
c. Before electing to
the five employees, the Guild should consider the
of the decision.
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