Arches Manufacturing had always made its components in-house. However, Canyonlands Component Works had recenthy offered to supply one component, DA, at a price of $12 each. Arches uses 4,800 units of component DA each year. The cost per unit of this companent is as follows? The fued overhead is an allocated expense; none of it would be eliminated if production of component Da stopped. Required: 1. What are the alternatives facing Arches Marufocturing with respect to production of componen Da? Make the component in house or to buy it from camyonlends 2. List the relevant costs for each altemative. If required, round your answers to the nearest cent. If , Arches decides to purchase the compontnt from Canyonlands, by how much will operating income increase or decrease (as compared to muking the conponect in bouse)? 1x 3. Concephual Connection: Which alternative is better