Ahmedabad Dairy has two divisions as profit centres viz. A (milk processing) and B (Milk Product). Division A is the only source of supply for an intermediate product that is converted by Division B into salable final product. Division A: A substantial part of A's costs are fixed. For any output up to 1000 units a day, its total costs are Rs. 10000 a day (excluding milk procurement costs which are fully passed on to consumers of final product). Total costs increase by Rs. 2000 a day for every additional thousand units processed. The current transfer price from Division A to B is Rs. 8 per unit. Division B: It incurs additional costs in converting the intermediate product supplied by A into a finished product. These conversion costs are Rs. 25000 for any output upto 1000 units, and Rs. 5000 per thousand units of output in excess of 1000. On the revenue side, B can increase its revenue only by spending more on sales promotion and by reducing selling prices. Its sales forecast is as below: Sales in Units Revenue net of selling costs Rs. Per 1000 units 1000 2000 3000 4000 5000 If both Divisions act independently: Maximum units of sale by B in Units Profit of A at the above level of sale Profit of B at the above level of sale 35000 26500 22000 18500 16000