ockrite Security Company manufacturers home alarms. Currently, it is manufacturing one of its components at a total cost of $45 which includes fixed costs of $16 per unit. An outside provider of this component has offered to sell Lockrite the component for $35.

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	$