Notson, Inc. produces several models of clocks. An outside supplier has offered to produce the commercial clocks for Notson for $420 each. Notson needs 1,200 clocks annually. Notson has provided the following unit costs for its commercial clocks:
Instructions
Prepare an incremental analysis which shows the effect of the make-or-buy decision.

Question

Notson, Inc. produces several models of clocks. An outside supplier has offered to produce the commercial clocks for Notson for $420 each. Notson needs 1,200 clocks annually. Notson has provided the following unit costs for its commercial clocks:  
Instructions
Prepare an incremental analysis which shows the effect of the make-or-buy decision.

Quizplus · Accepted Answer

The Answer of Notson, Inc. produces several models of clocks. An outside supplier has offered to produce the commercial clocks for Notson for $420 each. Notson needs 1,200 clocks annually. Notson has provided the following unit costs for its commercial clocks:  
Instructions
Prepare an incremental analysis which shows the effect of the make-or-buy decision.