Great 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 2020, assume that Great Loans incurred the following costs ($ millions):

Loan processing	$20,000
Customer relations	1,500
Printing, mailing, and postage	600

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

If the company has a continuous improvement goal of 4 percent each year, the budgeted amount for loan processing for 2021 will be:

a. $22,100

b. $17,900

c. $20,160

d. $16,464