Lockrite Security Company manufacturers home alarms. Currently, it is manufacturing one of its components at a total cost of $45, which includes fixed costs of $15 per unit. An outside provider of this component has offered to sell Lockrite the component for $40. Provide a differential analysis of the outside purchase proposal.

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The Answer of Lockrite Security Company manufacturers home alarms. Currently, it is manufacturing one of its components at a total cost of $45, which includes fixed costs of $15 per unit. An outside provider of this component has offered to sell Lockrite the component for $40. Provide a differential analysis of the outside purchase proposal.

Lockrite Security Company Manufacturers Home Alarms