• Intel is planning to develop a new line of processors with the following financial details:
  • Development Costs: $1 billion
  • Production Costs per Unit: $200
  • Selling Price per Unit: $500
  • Estimated Annual Sales: 5 million units
  • Fixed Costs: $400 million annually

• Requirements:
  1. Calculate the total annual revenue and production cost.
  2. Prepare a break-even analysis.
  3. Analyze the profit margin per unit and overall.
  4. Discuss the strategic benefits of the new processor line.
  5. Evaluate the market risks and competition.