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Question Content Area Lockrite Security Company manufacturers home alarms. Currently, it is manufacturing one of...

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Accounting

Question Content Area

Lockrite Security Company manufacturers home alarms. Currently, it is manufacturing one of its components at a total cost of $41, which includes fixed costs of $12 per unit. An outside provider of this component has offered to sell Lockrite the component for $37.

Provide a differential analysis of the outside purchase proposal. If an amount is zero, enter "0". For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Differential Analysis
Make Component (Alternative 1) or Buy Component (Alternative 2)
Make Component (Alternative 1) Buy Component (Alternative 2) Differential Effects (Alternative 2)
Unit costs:
Purchase price $fill in the blank 1 $fill in the blank 2 $fill in the blank 3
Variable costs fill in the blank 4 fill in the blank 5 fill in the blank 6
Fixed costs fill in the blank 7 fill in the blank 8 fill in the blank 9
Total unit costs $fill in the blank 10 $fill in the blank 11 $fill in the blank 12

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