Total production costs for Masters, Inc., are budgeted at $280,000 for 50,000 units of budgeted output and at $342,500 for 60,000 units of budgeted output. Because of the need for additional facilities, budgeted fixed costs for 60,000 units are 25 percent more than budgeted fixed costs for 50,000 units. How much is Masters budgeted variable cost per unit of output?

$3.00

$4.00

$5.00

$6.00