Make-or-Buy Decision for a Service Company
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 $12 per layout page. The budget for the Publication Department for the current year is as follows:
Salaries $174,200
Benefits 39,600
Supplies 21,100
Office expenses 26,400
Office depreciation 23,800
Computer depreciation 15,800
Total $300,900
The department expects to lay out 22,000 pages for the current year. The Publication Department office space
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