Fred bought a mobile hot dog stand. After a year of operations he is trying to understand his costs per unit better. He sells a hot dog, bag of chips, and bottle of soft drink as a bundled unit for $3. He estimated his costs for next year, based on 5,000 sales units as follows:

Cost Budgeted Annual Cost

Hot Dog $2,500.00

Gas cost for hotdog stand $450.00

Bagged snack foods $2,250.00

Hotdog buns $ 1,250.00

Insurance $400.00

Soft drinks $6,250

Depreciation on hotdog stand $550.00

Based on the budgeted costs, catagorize the costs into two groups. The first group should include all the direct costs associated with each sale. The second catagory should include all the indirect costs.

What is the total for all thedirect costs?