Tesla Inc. produces two types of electric vehicles, Model S and Model 3. The following cost data is available:

Cost Item	Model S	Model 3
Direct Material	$30,000/unit	$25,000/unit
Direct Labor	$10,000/unit	$8,000/unit
Overhead	160% of direct labor cost	150% of direct labor cost

Additional Information:

• Production for Model S: 5,000 units
• Production for Model 3: 8,000 units

Requirements:

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