Lockrite Security Company manufacturers home alarms. Currently, it is manufacturing one of its components at a total cost of $40 which includes fixed costs of $15 per unit. An outside provider of this component has offered to sell Lockrite the component for $34.

What is the cost savings for continuing to make the component?

Differential cost to purchase:
Purchase price of the componentVariable manufacturing costs	$fill in the blank 2
Differential cost to manufacture:
Purchase price of the componentVariable manufacturing costs	$fill in the blank 4
Cost savings from continuing to make the component