Banny's Corporation has two divisions. Assume Division XY has a product that can be sold either to outside customers or to Division YX of the same company for use in its production process. The managers of the divisions are evaluated based on their divisional profits.

Division XY:

Capacity in units 100,000

Number of units being sold to outside customers 100,000

Selling price per unit to outside customers $1,459

Variable costs per unit $638

Fixed costs per unit (based on capacity) $167

Division YX:

Number of units needed for production 40,000

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

Assume that $204 per unit in variable selling costs can be avoided on Banny's intracompany sales.

b) The lowest acceptable intracompany price for the Banny's selling division is?