Make-or-Buy Decision 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 $50 each. Arches uses 12,000 units of component DA each year. The cost per unit of this component is as follows: Line Item Description Amount Direct materials $25.00 Direct labor 6.25 Variable overhead 15.75 Fixed overhead 7.00 Total $54.00 Assume that 80% of Arches Manufacturing's fixed overhead for component DA would