Make-or-Buy Decision Wisconsin Arts of Milwaukee employs five people in its Publication Department. These people lay out pages for pamphlets, brochures, and other publications for the production. The...

Make-or-Buy Decision

Wisconsin Arts of Milwaukee employs five people in its Publication Department. These people lay out pages for pamphlets, brochures, and other publications for the production. 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 $20.00 per layout page. The budget for the Publication Department is as follows:

The department expects to lay out 33,500 pages. The computers used by the department have an estimated residual value of $26,800. The Publication Department office space would be used for future administrative needs if the department's function were purchased from the outside.