Division A of company is the only source of supply for INTPRO that is converted by Division B into FINPRO. Most of A's costs are fixed. For an output of 2,000 units of INTPRO per month, its total costs are $500. Total costs increase by $100 for every additional 1,000 units made i.e., total costs are $600 for the production of 3,000 units and $700 for the production of 4,000 units and can produce only in multiples of 1,000 units. Division A of company is the only source of supply for INTPRO that is converted by Division B into FINPRO. Most of A's costs are fixed. For an output of 2,000 units of INTPRO per month, its total costs are $500. Total costs increase by $100 for every additional 1,000 units made i.e., total costs are $600 for the production of 3,000 units and $700 for the production of 4,000 units and can produce only in multiples of 1,000 units