Question: Cost Behavior Analysis at Intel Values: Total Costs: $80,000,000 Fixed Costs: $30,000,000 Variable Costs per Unit: $20 Sales Revenue: $120,000,000 Requirements: Classify each cost component

Cost Behavior Analysis at Intel

    • Values:
      • Total Costs: $80,000,000
      • Fixed Costs: $30,000,000
      • Variable Costs per Unit: $20
      • Sales Revenue: $120,000,000
    • Requirements:
      1. Classify each cost component as fixed or variable for Intel.
      2. Calculate the contribution margin and contribution margin ratio.
      3. Discuss how cost behavior analysis helps in pricing decisions and profitability analysis at Intel.
      4. Recommend pricing strategies to optimize profitability at Intel.

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