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Make or buy decision Rivertown Electronics needs to procure a key component for an upcoming device and is debating between two procurement methods: purchasing from

Make or buy decision
Rivertown Electronics needs to procure a key component for an upcoming device and is debating between two procurement methods: purchasing from an external vendor or manufacturing it internally. The annual demand for this component is projected to be 15,000 units.
Rivertown calculates its holding cost to be 20% per year and has received the following proposals:
Option 1: Purchase from a vendor. TechSupply has offered Rivertown a price of $35 per unit. Due to the need for specialized tooling, TechSupply also requires a fixed fee of $1,200 per batch. Rivertown anticipates an additional $150 per order plus $3 per unit in shipping fees. TechSupply can produce at most 1,500 units per batch.
Option 2: In-house production. Rivertown estimates it can manufacture the component at a rate of 100 per day (assuming 200 working days per year). Due to less efficient tooling processes compared to TechSupply, tooling will cost Rivertown $5,000 per batch, and each unit costs $38 to produce (with no shipping costs as it is in-house).
Question:
What is the total cost from the vendor?
What is the total cost from in-house production?
What per unit discount would TechSupply need to offer for Rivertown to reconsider its choice? Calculate to the nearest cent and enter the answer in terms of dollars (e.g.1 cent should be entered as 0.01).

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