Pfizer Inc. produces two types of pharmaceutical products, Drug A and Drug B. The following cost data is available:

Cost Item	Drug A	Drug B
Direct Material	$8/unit	$12/unit
Direct Labor	$3/unit	$4/unit
Overhead	150% of direct labor cost	140% of direct labor cost

Additional Information:

• Production for Drug A: 500,000 units
• Production for Drug B: 300,000 units

Requirements:

1. Calculate the total cost for Drug A and Drug B.
2. Determine the cost per unit for each drug.
3. Prepare a cost sheet for both drugs.
4. Analyze the cost structure and suggest which product is more cost-effective.
5. Discuss the implications of cost structure on pricing strategy and market competitiveness.