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W UNE labor costs. a. Prepare a differential analysis report for the make-or-buy a b. On the basis of the data presented, would it be port for the make-or-buy decision. to continue buying them? Explain. it be advisable to make the carrying cases or Obj. 1, 2 E12-7 Make-or-buy decision Wisconsin Arts of Milwaukee employs five people i people lay out pages for pamphlets, brochures, an tions. The pages are delivered to an outside company for sidering an outside publication service for the layout work. 1 employs five people in its Publication Department. These Pamphlets, brochures, and other publications for the produc- an outside company for printing. The company is on service for the layout work. The outside service is Chapter 12 Differential Analysis and Product Pricing cation Department is quoting a price of $9.50 per layout page. The budget for the Publication Depart as follows: Salaries Benefits Supplies Office expenses Office depreciation Computer depreciation Total $185,000 50,000 30,000 25,000 70,000 18,000 $378,000 The department expects to lay out 30,000 pages. The computers used by the depart- ment have an estimated residual value of $6,500. 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 differ- ential revenues and costs. b. On the basis of your analysis in part (a), should the page layout work be purchased from an outside company? c. What additional considerations might factor into the decision making

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