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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 of
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 $38. 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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