WLS Company currently makes a key component for their tractors in house. The costs are as follows:

WLS Company currently makes a key component for their tractors in house. The costs are as follows:

                                               Per Unit

Direct Materials                               $ 4.00

Direct Labor                          6.00

Allocated Overhead        10.00

Total Cost                           $20.00

If the component is purchased from an outside vendor the company will reduce their overhead costs by 80%. What is the maximum purchase price the company should consider to move to an outside vendor without respect to any other issue?

(present calculations for partial credit). Label your answer.