Make-ar-Buy Decision Arches Manutacturing had always made its components in-house. However, Canyanlands Component Works had recentiy offered to supply one component, DA, at a price of 512 each, Arches uses 4,400 units of component DA each yeat The cost per unt of this component is as follows: The fixed overhead is an allocated expense; none of it would be eliminated if production of component DA stopped. Required: 1. What are the aiternatives facing Arches Manufacturing with respect to production of component DA? Make the component inshouse of to buy at trom. Canvonlands- d 2. List the relevant costs for each altemative. 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? Foefteact Toma My mok. Reievant costs are foture costs and differ acrost altematives. Determies receunt costs for both alternatives. Set up four columns. Firat column ists all conts. Second ane thind columns are for atternatives, muke or buy aod bit all amgunts. Fourth colvmo is the difterential cost to make