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

if you calculated an indirect cost application rate based on the budgeted 5,000 units sold, what would be the application rate per unit?