Jackson Inc. produces leather handbags. The production budget for the next four months is: July 5,300 units, August 7,500 units, September 7,600 units, October 8,400 units. Each handbag requires 0.4 square meters of leather. Jackson Inc.'s leather inventory policy is 25% of next month's production needs. On July 1 leather inventory was expected to be 530 square meters. Leather is expected to cost $15.00 per square meter in June, but go up to $16.00 per square meter in July. What is the expected cost of leather purchases in July? O $38,340 O $38,440 O $35,940 O$37,440