Brief Exercise 169

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. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

ent CALCULATOR FULL SCREEN PRINT the number e.g.-45 or parentheses e.g. (45).) Incremental Analysis Incremental Effect Open Show Work Click if you would like to Show Work for this question: LINK TO TEXT SAVE FOR LATE Question Attempts: 0 of 1 used