IBM manufactures two types of servers, Basic and Advanced. The following cost data pertains to these servers:

Cost Item	Basic Server	Advanced Server
Direct Material	$500/unit	$800/unit
Direct Labor	$200/unit	$300/unit
Overhead	150% of direct labor cost	120% of direct labor cost

Additional Information:

• Production for Basic Server: 5,000 units
• Production for Advanced Server: 3,000 units

Requirements:

1. Calculate the total cost for Basic Server and Advanced Server.
2. Determine the cost per unit for each server.
3. Prepare a cost sheet for both servers.
4. Compare the cost structures and suggest which server is more cost-effective.

Recommend pricing strategies based on the cost analysis.