Question: Intel manufactures processors, memory chips, and storage devices. The financial data is as follows: Processors: Sales Units - 2,000,000, Sales Price per Unit - $200,
- Intel manufactures processors, memory chips, and storage devices. The financial data is as follows:
- Processors: Sales Units - 2,000,000, Sales Price per Unit - $200, Variable Cost per Unit - $120, Fixed Cost - $300,000,000
- Memory Chips: Sales Units - 1,500,000, Sales Price per Unit - $150, Variable Cost per Unit - $90, Fixed Cost - $200,000,000
- Storage Devices: Sales Units - 1,000,000, Sales Price per Unit - $100, Variable Cost per Unit - $60, Fixed Cost - $150,000,000 Requirements:
- Prepare the Income Statement for each product line.
- Calculate the Contribution Margin per unit for each product line.
- Determine the Break-Even Point in units and dollars for each product line.
- Evaluate the profitability and suggest ways to improve the margins.
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