Caterpillar Inc. produces two types of construction equipment, Bulldozers and Cranes. The following cost data is available:

Cost Item	Bulldozers	Cranes
Direct Material	$50,000/unit	$70,000/unit
Direct Labor	$20,000/unit	$30,000/unit
Overhead	140% of direct labor cost	130% of direct labor cost

Additional Information:

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

Requirements:

1. Calculate the total cost for Bulldozers and Cranes.
2. Determine the cost per unit for each equipment.
3. Prepare a cost sheet for both types of equipment.
4. Compare the cost structures and suggest which equipment is more cost-effective.
5. Discuss the impact of production volume on cost efficiency and pricing strategy.