Arches Manufacturing had always made its components in-house. However, Canyonlands Component works had recently offered to supply one component, OA, at a price 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 overhead is an aliocated expense; none of it would be eliminated if production of component DA stopped. Required: 1. What are the alternstives 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 Canyonitands, by how much will operating income increase ar decrease (as compared to makng the component inhousel? 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 Canyaniands, by how much will operating income increa house)? 3. Conceptual Connection; Which alternatve is betten