Alex corporation has two division. assume division zz has a product that can be sold either to outside customers or to Division RR of the same company for use in its production process. the managers of the divisions evaluated based on their divisional profits

Division zz:

capacity units: 100,000

number of units being sold to outside customers: 100,000

selling price per unit to outside customer: $1,416

variable cost per unit: 714

Fixed costs per unit: $348.

Division YY:

Number of units needed for production: 40000

Purchase price per unit now being paid to an outside supplier $860

Assume that $270 per unit in variable selling costs can be avoided on Alex corporation intracompany sales.

Q: The lowest acceptabe intracompany price per unit for the Alex corporation selling division is?