The following costs pertain to a component part manufactured by Lindfield Company:
Direct materials -- \$3
Direct labor -- \$6
Factory overhead -- \$20
Factory overhead is applied at \$1.75 per direct labor hour. Fixed capacity cost is 60% of applied factory overhead and is not affected by a "make or buy" decision. It would cost \$22 per unit to buy the part from an outside supplier.
In the decision to "make or buy," what is the total relevant unit manufacturing cost to be considered?