Transfer Pricing The materials used by the Multinomah Division of Isbister Company are currently purchased from outside suppliers at $67 per unit. These same materials are produced by the Pembroke Division. The Pembroke Division can produce the materials needed by the Multinomah Division at a variable cost of $37 per unit. The division is currently producing 161,000 units and has capacity of 230,000 units. The two divisions have recently negotiated a transfer price of $54 per unit for 69,000