Question: If the AMD Ryzen 16-Core CPU saves $1,000 per computer manufactured, how would computer manufacturers variances be impacted? AMD is rumored to be releasing a

If the AMD Ryzen 16-Core CPU saves $1,000 per computer manufactured, how would computer manufacturers variances be impacted?

AMD is rumored to be releasing a new 16-core, 32 thread CPU, that would be significantly more powerful than its competitors and it would be about $1,000 less expensive than the closest Intel CPU. This AMD chip is named AMD Ryzen and it has six more cores than Intels current primary desktop CPU the Core i7 (technically, the Core i7-6950x.) (This class of CPUs is for power users; these CPUs are much more powerful than standard desktop CPUs.)

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How, if at all, would the $1,000 cost savings per CPU impact a computer manufacturers direct materials price variance in the short run?

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