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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.
Governmental Purchases
Expenditures made by the government for goods and services that are used to provide public services.
Domestic Output
The total value of all goods and services produced within a country's borders in a given time period.
Transfer Payments
Payments made by governments to individuals or other entities without requiring a good or service in return, such as welfare or social security payments.
Government Purchases
Expenditures by the government sector on final goods and services in a given period.
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