Arches Manufacturing had always made its components in-house. However, Canyonlands Component Works had recently offered to supply one component, DA, at a prit of $12 each. Arches uses 4,400 units of component DA each year, The cost per unit of this component is as follows: The fixed overheod is an allocated expense; none of it would be eliminated if production of component DA stopped. Required: 1. What are the aiternatives focing Arches Manufacturing with respect to prodiction of component OA? pund your answers to the nearest cent. If Arches decides to purchose the component from Canyonlands, by how mush will operating income increase or decrease (as compared to making the component int. nousen) ] The fixed overhesd is an allocated expense; none of it would be eliminated if production of component DA stopped. Required 1. What are the alternatives facing Arches Manufacturing with respect to production of component DA? 2. Ust the relevant costs for each alternative. If required, round your answers to the nearest cent. If Arches decides to purchase the component from Camyonlands, by how much will operating income increase or decrease (as compared to making the component inheuse)? 3. Conceotual Connection: Which alternative is bettern