Spokes Bicycles is a prominent producer-packer-and-seller of bicycles in Western Canada. The company has two distinct Divisions. Division L produces and sells one of its products to Division M, within the same consolidated group. Division L also sells the same product externally.

The unit product costs to Division L consist of $150 for direct materials, $58 of direct labour, $9 of variable overhead, and $86 of fixed overhead. On external sales, Division L applies full cost-plus pricing, and charges a price equal to the full cost of the product plus a markup of 15%.

Assuming Division L is currently operating at full capacity and can save $10 of variable costs for each unit transferred internally, what is the minimum transfer price it should charge Division M for each unit of production?