Cactus Cover Corporation produces a plant cover to help plants stay shaded and cool in the hot summer sun. Each plant cover requires 10.5 yards of a special patented fabric. During the first five months of the year, Cactus Cover Corporation budgets that they will produce the following covers: January 23,400 covers February 22,100 covers March April 23,500 covers May 24,700 covers 24,400 covers The corporation desires a monthly ending inventory of the fabric equal to 20% of the fabric needed for the following month's budgeted. However, on January 1, the company had only 11,600 yards of fabric on hand. The cost of the fabric is expected to be $26 per yard. The cost of the fabric to be purchased in January is: Multiple Choice $7,293,260 $7,594,860 $6,388,200