Josie’s Grill budgeted
the following costs for a month in which 1,500 steak dinners will be produced
and sold: materials, $4,080; hourly labor (variable), $5,200; rent (fixed),
$1,700; depreciation, $800; and other fixed costs, $600. Each steak dinner
sells for $14.00 each. How much is the budgeted variable cost per unit?