Janus Inc. is considering whether to continue to make a component or to buy it from an outside supplier. The company uses 22,500 of the components each year. The unit product cost of the component according to the company's cost accounting system is as follows:

Direct materials	$ 15.30
Direct labor	6.50
Variable manufacturing overhead	2.25
Fixed manufacturing overhead	4.70
Total unit product cost	$ 28.75

Of the fixed manufacturing overhead, 50% is avoidable if the component is purchased from an outside supplier. When deciding whether to make or buy the component, what is the relevant cost?

		$21.80
		$24.05
		$28.75
		$26.40