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Intel analyzes the behavior of its manufacturing costs. In August 2044, the following data is provided: Total Costs at 80% Capacity: $16,000,000 Total Costs at
Intel analyzes the behavior of its manufacturing costs. In August 2044, the following data is provided:
- Total Costs at 80% Capacity: $16,000,000
- Total Costs at 60% Capacity: $12,000,000
Requirements:
- Determine the fixed and variable components of the total cost.
- Calculate the cost behavior equation.
- Prepare a cost prediction for 90% capacity.
- Analyze the impact of cost behavior on pricing and production decisions.
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