Microsoft has the following production costs for its Surface products: Surface Pro, Surface Laptop, and Surface Book:

• Surface Pro: Direct Materials: $10,000,000; Direct Labor: $5,000,000; Overhead Rate: 150%
• Surface Laptop: Direct Materials: $12,000,000; Direct Labor: $6,000,000; Overhead Rate: 150%
• Surface Book: Direct Materials: $15,000,000; Direct Labor: $7,000,000; Overhead Rate: 150%

Requirements:

1. Calculate the total cost for each Surface product.
2. Determine the total overhead applied to each product.
3. Prepare a detailed cost report for Microsoft.
4. Compute the selling price per unit if the markup percentage is 20% on the total cost.
5. Evaluate the cost-effectiveness of each product line.