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.