Make$-$or$-$Buy Decision

The fixed overhead is an allocated expense; none of it would be eliminated if production of component DA stopped.

Required:

What are the alternatives facing Arches Manufacturing with respect to production of component DA$?$

Make the component in$-$house or to buy it from Canyonlands

List the relevant costs for each alternative. If required, round your answers to the nearest cent.

Make

Buy

Decrease $$

$x$

Conceptual Connection: Which alternative is better?

$M_i{?}_{{?}_{?}}$