Richard Co. manufactures leather briefcases and carryalls. Richard's production manager has provided the following production budget. Each briefcase or carryall requires 1.2 yards of leather fabric and Richard maintains an ending inventory of leather fabric equal to 25% of the next month's production needs.

	February	March	April	May	June
Budgeted production	52000	43200	59700	63800	57200

If each yard of leather fabric costs $6.50, how much should Richard budget for purchases of fabric in February?

$405600

$489840

$335400

$388440