17- Quicken Loans has been displeased with the costs of servicing its consumer loans. Assume that it has decided to implement a Kaizen-based cost improvement program. For 2017, assume that Quicken Loans incurred the following costs ($ millions):

Loan processing

$12,000

Customer relations

2,000

Printing, mailing, and postage

600

For the next two years, Quicken expects an increase in consumer loans of 5 percent annually with related increases in costs.

If the company has a continuous improvement goal of 2 percent each year, the budgeted amount for Customer relations for 2018 will be:

$2,058

$1,480

$2,100

$1,960