Mackinac Island produces various fudge flavors, the most popular being chocolate fudge. The production budget for the next four months is: July 5,200 units, August 7,800 units, September 7,900 units, October 8,800 units. Each piece of chocolate fudge requires 0.7 ounces of sugar. Mackinac Island chocolate fudge inventory policy is 40% of next month's production needs. On July 1 sugar inventory was expected to be 1,456 ounces. Sugar is expected to cost $15.00 per ounce in June, but go up to $16.00 per ounce in July. What is the expected cost of sugar purchases in July?