1. Company: Intel

Scenario: Microprocessor Production Cost Control

Data:

• Monthly Fixed Costs: $5,000,000
• Variable Costs per Chip: $10
• Chips Produced: 1,000,000

Requirements:

1. Calculate the total monthly costs.
2. Determine the cost per chip.
3. Analyze the impact of increasing production by 200,000 chips on total and per-chip costs.
4. Discuss strategies for managing costs in microprocessor production.
5. Recommend ways to improve cost efficiency.
6. Evaluate the benefits of using predictive analytics for cost control.