PristinDay Company produces handheld calculators. The company controller wanted to calculate the fixed and variable costs associated with the maintenance cost incurred by the factory. Data for the past four months were collected as follows:

	Maintenance	Machine
Month	cost	hours
June	$5,000	350
July	3,000	320
August	4,000	315
September	3,300	220

Coefficients shown by a regression program are as follows:

Intercept	1,000
X Variable 1	8.5

Using the results of regression, calculate the budgeted cost for maintenance next month assuming that 200 machine hours are budgeted. (Round the answer to the nearest dollar.)

a.$4,225

b.$1,200

c.$2,700

d.$3,000