Appropriate Transfer Prices: Opportunity Costs market price. Production costs per pound of the peanut-processing company are as follows: Any output of the Peanut Division up to 2,800,000 pounds that is not sold to the Peanut Butter Division could be sold to regular customers at $2.00 per pound. (a) Compute the annual gross profit for the Peanut Division using a transfer price of $2.00. (b) Compute the annual gross profit for the Peanut Division using a transfer price of $1.08. $