Caterpillar Inc. manufactures two types of heavy machinery, Bulldozers and Excavators. The following cost data is available:

Cost Item	Bulldozers	Excavators
Direct Material	$50,000/unit	$70,000/unit
Direct Labor	$20,000/unit	$30,000/unit
Overhead	140% of direct labor cost	120% of direct labor cost

Additional Information:

• Production for Bulldozers: 1,000 units
• Production for Excavators: 800 units

Requirements:

1. Calculate the total cost for Bulldozers and Excavators.
2. Determine the cost per unit for each machinery type.
3. Prepare a cost sheet for both types of machinery.
4. Compare the cost structures and suggest which type is more cost-effective.
5. Discuss the implications of the cost structure on pricing strategy and profitability.