The Theatre Arts Guild of Miami employs five people in its production department. These people layout paget for pamphlets, brochures, magazines, and other publications for the TAG-M 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 $14 per layout page. The budget for the publication department for 2013 is as follows:
Salaries $185000
Benefits $42000
Supplies 23000
office expense 28000
office depreciation 25000
computer depreciation 17000
total 320000
The department expects to layout 20000 pages for 2012. The computers used by the department hav an estimated residual value of 9000. The publication department office space would be used for the future administrative needs, it the department's funciton were wurchased from the outside.
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