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Lockrite Security Company manufacturers home alarms. Currently, it is manufacturing one of its components at a total cost of $43, which includes fixed costs
Lockrite Security Company manufacturers home alarms. Currently, it is manufacturing one of its components at a total cost of $43, which includes fixed costs of $12 per unit. An outside provider of this component has offered to sell Lockrite the component for $35. Provide a differential analysis of the outside purchase proposal. If an amount is zero, enter "0". For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Make Component (Alternative 1) or Buy Component (Alternative 2) Differential Unit costs: Purchase price Variable costs Fixed costs Total unit costs Make Component (Alternative 1) Buy Component Effects (Alternative 2) (Alternative 2)
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