Question: Need answer for this. Thanks. 3. Recently, there was a revision to the analyst's forecast about demand in the semiconductor industry. It is presumed that
Need answer for this. Thanks.

3. Recently, there was a revision to the analyst's forecast about demand in the semiconductor industry. It is presumed that demand in foreseeable xture will remain at 25,000 chips per month. Therefore. Qorvo Bhdplans to develop long-term market for the excess capacityr of 15,000 chips by approaching other companies within the medical device industry. Assume that three medical device's companies agreed to enter into a ve-year agreement for a supply of 15,000 chips at a price ofRMBO per chip. The design cost remains at RMOJS per chip. On the other hand, if Qorvo m decides to downsize its production capacity to 25 ,000 units per month, it will be able to save RM30,000 manufacturing non-variable cost per month and a further savings of RM10,000 in monthly marketing costs. Direct materials, direct labor and variable manufacturing overhead will accordingly reduce by 10%. In addition, the company.r can rentout the additional space for RM70,000 per month. 8.. Investigate whether Qorvo 3.011 should accept the additional offer of 15,000 chips per month or downsize its production capacity? (10 marks) b. Recommend the best course of action for Qorvo Bhd. (I mark)
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