Cook Co.'s total costs of operating five sales offices last year were $500,000, of which $70,000 represented fixed costs. Cook has determined that total costs are significantly influenced by the number of sales offices operated. Last year's costs and the number of sales offices can be used as the basis for predicting annual costs. What would be the budgeted costs for the coming year if cook were to operate seven sales offices? Assume that the additional sales offices would remain within the relevant range. $672,000 $586,000 $614,000 $700,000