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Notson, Inc. produces several models of clocks. An outside supplier has offered to produce the commercial clocks for Notson for $ 4 2 0 each.

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:
What is the incremental effect on net income if Notson choses to outsource the
production of the 1,000 clocks annually?
Should Notson make or buy the clocks?
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