Lockrite Security Company manufacturers home alarms. Currently, it is manufacturing one of its compo

Lockrite Security Company manufacturers home alarms. Currently, it is manufacturing one of its components at a total cost of $41 which includes fixed costs of $16 per unit. An outside provider of this component has offered to sell Lockrite the component for $33.

What is the cost savings for continuing to make the component? Differential cost to purchase: $ Differential cost to manufacture: $ Cost savings from continuing to make the component $

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