PepsiCo produces two types of snacks, Chips and Pretzels. The following cost data is available:

Cost Item	Chips	Pretzels
Direct Material	$0.3/unit	$0.4/unit
Direct Labor	$0.1/unit	$0.15/unit
Overhead	200% of direct labor cost	170% of direct labor cost

Additional Information:

• Production for Chips: 2,000,000 units
• Production for Pretzels: 1,500,000 units

Requirements:

1. Calculate the total cost for Chips and Pretzels.
2. Determine the cost per unit for each product.
3. Prepare a cost sheet for both products.
4. Analyze the cost structure and suggest which product is more cost-effective.
5. Discuss the implications of the cost structure on the pricing strategy.