Arches Manufacturing had always made its components in-house. However, Canyonlands Component Works had recently offered to supply one component, DA, at a price of $11 each. Arches uses 4,500 units of component OA each vear, The cost per unit of this component is as follows: The fixed overhead is an alocated expense; none of it would be eliminated if production of component DA stopped. Required: 1. What are the alternatives focing Arches Manufacturing with respect to production of component DA? 2. Uist the relevant costs for each alternative. If required, round your answers to the nearest cent. If Arches decides to purchase the component from Canyonlands, by how much will operating income increase or decrease (as compared to making the component inhouse)? 3. Conceptual Connection: Which alternative is better