Sandra has developed a new product that she has decided to produce and market.

Sandra has found a small building to rent for $$1500$ a month that will house the

production facilities. One major piece of equipment that will be used to manufacture

the product will be rented for $$300$ a month. Sandra purchased all of the other

needed tools for $$3,000$ which will last for two years and depreciation expense will

be $$125$ per month.

Material costs to make the product are estimated at $$3$ per unit. Sandra is expecting

to spend about $0\mathrm{.}25$ hour for production of each unit and she is planning a pay rate

of $$32$ per hour for herself. Monthly advertising costs for the product are estimated

at $$800.$ Sandra is planning to pay $$2$ commission for sale of each unit. She is

expecting to sell $1000$ units each month at a price of $$18$ each.

Compute variable cost per unit. Carry up to two decimal points.