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:

0. Classify each cost component as fixed or variable for Intel.
1. Calculate the contribution margin and contribution margin ratio.
2. Discuss how cost behavior analysis helps in pricing decisions and profitability analysis at Intel.
3. Recommend pricing strategies to optimize profitability at Intel.