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.
Definitions:
Outstanding Shares
The total number of shares of stock that are currently owned by shareholders, including those held by institutional investors and restricted shares.
Merger
The process by which two or more companies combine to form one entity, often with the intention of increasing competitive advantage or expanding market reach.
Purchase Method
The purchase method is an accounting approach used in mergers and acquisitions, where the assets and liabilities of the acquired company are consolidated at their fair market values.
Fair Market Value
The price at which an asset would exchange between a willing buyer and a willing seller, each having reasonable knowledge of the relevant facts, and neither being under any compulsion to buy or sell.
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