The following are the Dip Switch settings based off of MAME 0.180 source code.
 
Use this information at your own risk!  The information was parsed from the MAME source code and could contain errors as to the state, order or descriptions of what the switches do.  If you find an error, please let me know on the Contact Us form and I will work on correcting the issue. 
 
 
 
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Manufactured by Data East USA, Released in 1984
ROM Version: Karate Champ (US VS version, set 1)
Print
Dip Switch:DSW
12345678FunctionOption
OffOff      Coin B1 Coin/1 Credit*
OnOff      1 Coin/2 Credits
OffOn      2 Coins/1 Credit
OnOn      3 Coins/1 Credit
  OffOff    Coin A1 Coin/1 Credit*
  OnOff    1 Coin/2 Credits
  OffOn    2 Coins/1 Credit
  OnOn    3 Coins/1 Credit
    OffOff  DifficultyEasy
    OffOn  Hard*
    OnOn  Hardest
    OnOff  Medium
      Off Demo SoundsOff
      On On*
       OffFree PlayOff*
       OnOn
ROM Version: Karate Champ (US VS version, set 2)
Print
Dip Switch:DSW
12345678FunctionOption
OffOff      Coin B1 Coin/1 Credit*
OnOff      1 Coin/2 Credits
OffOn      2 Coins/1 Credit
OnOn      3 Coins/1 Credit
  OffOff    Coin A1 Coin/1 Credit*
  OnOff    1 Coin/2 Credits
  OffOn    2 Coins/1 Credit
  OnOn    3 Coins/1 Credit
    On   DifficultyHard
    Off   Normal*
     Off  Free PlayOff*
     On  On
      Off Demo SoundsOff
      On On*
       OffCabinetCocktail
       OnUpright*
ROM Version: Karate Champ (US)
Print
Dip Switch:DSW
12345678FunctionOption
OffOff      Coin B1 Coin/1 Credit*
OnOff      1 Coin/2 Credits
OffOn      2 Coins/1 Credit
OnOn      3 Coins/1 Credit
  OffOff    Coin A1 Coin/1 Credit*
  OnOff    1 Coin/2 Credits
  OffOn    2 Coins/1 Credit
  OnOn    3 Coins/1 Credit
    On   DifficultyHard
    Off   Normal*
     Off  Free PlayOff*
     On  On
      Off Demo SoundsOff
      On On*
       OffCabinetCocktail
       OnUpright*
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