limiting factor

P is considering whether to continue making a component or to buy it from an outside supplier. It uses 12,000 of the components each year.
The internal manufacturing cost comprises:

Direct materials 3.00
Direct labour 4.00
Variable overhead 1.00
Specific fixed cost 2.50
Other fixed costs 2.00

If the direct labour were not used to manufacture the component, it would be used to increase the production of another item for which there is unlimited demand. This other item has a contribution of $10.00 per unit but requires $8.00 of labour per unit.

What is the maximum price per component, at which buying is preferable to internal manufacture?

Sir i dont understand how to answer this question. There is not detailed solution also available. So would you mind helping me a bit here?

thanks