Intel Corporation provides semiconductor manufacturing using operating costing. In February 2033, the company incurs the following operating costs:

• Fabrication Facility Rent: $45 million
• Production Labor: $60 million
• Research and Development: $25 million
• Technical Support: $20 million
• Administrative Overhead: $30 million

Required:

• Classify each cost as fixed, variable, or semi-variable.
• Analyze the cost behavior of operating costs in semiconductor manufacturing.
• Determine the cost per semiconductor chip produced assuming 50 million chips.
• Discuss strategies to manage variable costs in operating costing.
• Prepare an operating costing statement for Intel Corporation.