Lockrite Security Company manufacturers home alarms. Currently, it is manufacturing one of its components at a total cost of $44 which includes fixed costs of $13 per unit. An outside provider of this component has offered to sell Lockrite the component for $40. What is the cost savings for continuing to make the component?

Differential cost to purchase:
Variable manufacturing costs	$
Differential cost to manufacture:
Purchase price of the component	$
Cost savings from continuing to make the component	$