Arches Manufacturing had always made its components in-house. Hawever, Canyonlands Component Works had recently offered to supply one companent, DA, at a price of $13 each. Arches uses 4,100 units of component DA each year. The cost per unit of this component is as folfoms. The foxed overhead is an allocated expense; none of it would be elininated if production of convonert DA stopped. Required: 1. What are the alternatives facing Arches Manufacturing with respect to production of component DM? 2. Int the relevant costs for each alternative. If required, round vour answers to the nearest cent. If Arches decides to purchase the camponent from Canyonlands, by how much will operating income incease or decrease (ss compared to making the camponent in-houne)? 1. What are the alternatives facing Arches Manufacturing with respect to production of component DA? 2. List the relevant costs for each alternative. If required, round your answers to the nearest cent. If Arches decides to purchase the component from Canyonlands, ty haw much will operating income increase or decrease (as compared ta makang the component in-bouse 3. Conceptual Connection: Which alternative is better