Intel is evaluating the costs for developing a new semiconductor technology. Fixed R&D costs are $1.5 billion, and variable production costs per unit are $50. Intel plans to produce 10 million units in the first year, with projected annual revenue of $2 billion.

Requirements:

• Calculate the total R&D and production costs for the new semiconductor technology.
• Determine the cost per unit and the contribution margin.
• Analyze the break-even point in units and revenue.
• Discuss the strategic importance of semiconductor innovation in Intel's business strategy.
• Evaluate the financial impact of the new technology on Intel's income statement.
• Recommend manufacturing and distribution strategies to optimize profitability.