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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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