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