Compton Co. plans to produce 400 upholstered pillows in November and 325 in December. Each pillow requires .8 yards of fabric, at a cost of $12.50 per yard. The inventory of fabric at the beginning of November will be 96 yards. If Compton would like to have an inventory of fabric at the end of each month equal to 30% of the next month's production needs, what will be the budgeted cost of fabric to be purchased during the month of November?

		a. $3,725.00
		b. $3,787.50
		c. $3,775.00
		d. $3,768.75