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12,000 units of component DA each year. The cost per unit of this component is as follows: Assume that 80% of Arches Manufacturing's fixed overhead for component DA would be eliminated if that component were no longer produced. Required: Which alternative is better? 2. Conceptual Connection: Briefly explain how increasing or decreasing the 80% figure affects Arches's final decision to make or purchase the component. the "purchase" decision being even attractive. Alternatively, as the percentage of avoidable fixed costs decreases, the "make" option eventually is costly and decrease, the option becomes the more financially appealing option "purchasing" the component? $x Feedback Check My Work 1. Relevant costs are future costs and differ across alternatives. Determine relevant costs for both alternatives