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Exercise 2-35 Differential Cost (LO 2-1, 2-10) Global Communications, Inc. manufactures communications satellites used in TV signal transmission. The firm currently purchases one component for its satellites from a European firm. A Global Communications engineering team has found a way to use the companys own component, part number A200, instead of the European component. However, the Global Communications component must be modified at a cost of $730 per part. The European component costs $9,900 per part. Global Communications part number A200 costs $5,700 before it is modified. Global Communications currently uses 14 of the European components per year Required: Calculate the annual differential cost between Global Communications two production alternatives. Annual differential cost

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3iven hat The annal difPesentialstbetween btal communicaons tu Pooduchce Annuou coet uans tusorun comeneni ($9960x14) :1138,6

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