Click on Cart Setup
Click on Shipping
In the 2nd box down, put in a handling fee. This handling fee will be your BASE shipping price.
For this example we'll use $3.75 as the base price. The cart will not show this as a "handling fee".
Choose Option #3 and put 1.00 in the box that says "Shipping cost per unit".
Click Update
Now when you add a product to your site, remember that you already have a base price of $3.75 being charged for shipping no matter what. When adding your product, in the shipping units box write the dollar amount you want to charge as if this were the ADDITIONAL item being purchased. For example, add .25 in the shipping units box. The cart will now charge $3.75 PLUS the .25¢ you added which now brings the total in the cart to $4.00 even.