IBM manufactures two types of computer systems, System X and System Y. The following cost data is provided:

Cost Item	System X	System Y
Direct Material	$1,000/unit	$1,500/unit
Direct Labor	$400/unit	$600/unit
Overhead	160% of direct labor cost	140% of direct labor cost

Additional Information:

• Production for System X: 5,000 units
• Production for System Y: 3,000 units

Requirements:

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