Coca-Cola Company produces two types of soft drinks, Coke and Diet Coke. The following cost data is provided:

Cost Item	Coke	Diet Coke
Direct Material	$0.3/unit	$0.4/unit
Direct Labor	$0.1/unit	$0.15/unit
Overhead	200% of direct labor cost	180% of direct labor cost

Additional Information:

• Production for Coke: 2,000,000 units
• Production for Diet Coke: 1,500,000 units

Requirements:

1. Calculate the total cost for Coke and Diet Coke.
2. Determine the cost per unit for each soft drink.
3. Prepare a cost sheet for both soft drinks.
4. Analyze the cost structure and suggest which product is more cost-effective.
5. Discuss the implications of cost structure on pricing strategy and profitability.