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 $15 per unit. An outside provider of this component has offered to sell Lockrite the component for $32. What is the cost savings for continuing to make the component?

Differential cost to purchase:
Select one: purchase price of component OR variable manufacturing costs	$ _______________
Differential Cost to manufacture: Select one: purchase price of component OR variable manufacturing costs	$ ______________
Cost savings from continuing to make the component	$ _____________

Select one: purchase price of component OR variable manufacturing costs