XYZ Manufacturing needs to source a component for a new product and is considering two options:

buy directly from a supplier or produce it in-house. The demand for the item is 10,000 units per year.

XYZ estimates that its holding cost is 35% per year, and has received the following quotes.

Option 1: Buy from a supplier. AAA corporation has quoted XYZ a price of $50 per unit. Because the part requires special tooling, AAA also requires a flat fee of $900 per batch. XYZ estimates that they will incur an additional $200 per order plus $1.75 per unit in transportation costs.

Option 2: Produce in-house. XYZ estimates that it can produce this item at a rate of 90 per day (there are about 250 working days per year). Because XYZ is not as efficient as AAA, tooling will cost XYZ $3,000 per batch, and each unit cost $41 to produce in-house.

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What unit cost would AAA have to charge for XYZ to consider changing options?

*Need to be in Excel, please formula text the cells.