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  3. notson, inc. produces several models of clocks. an

Notson, Inc. produces several models of clocks. An outside supplier has offered to produce the...

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Accounting

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:

Direct materials $100
Direct labor 140
Variable overhead 80
Fixed overhead (40% avoidable) 150

Prepare an incremental analysis which shows the effect of the make-or-buy decision.

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