Cullumber, Inc. produces several models of clocks. An outside supplier has offered to produce the commercial clocks for Cullumber for $$480$ each. Cullumber needs $1,000$ clocks annually. Cullumber has provided the following unit costs for its commercial clocks:

Direct materials

$$120$

Direct labor

$160$

Variable overhead

$100$

Fixed overhead $(40\%$ avoidable$)$

$170$

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$\mathrm{.}8.(45).)$

Incremental Analysis

Incremental Effect

Direct material