The Martin-Beck Company operates a plant in St. Louis with an annual capacity of 30,000 units. Product is shipped to regional distribution centers located in Boston, Atlanta, and Houston. Because of an anticipated increase in demand, Martin-Beck plans to increase capacity by constructing a new plant in one or more of the following cities: Detroit, Toledo, Denver, or Kansas City. The estimated annual fixed cost and the annual capacity for the four proposed plants are as follows:

Proposed Plant Annual Fixed Cost Annual Capacity

Detroit $175,000 10,000

Toledo $300,000 20,000

Denver $375,000 30,000

Kansas City $500,000 40,000

The company's long-range planning group developed forecasts of the anticipated annual demand at the distribution centers as follows:

Distribution Center Annual Demand

Boston 30,000

Atlanta 20,000

Houston 20,000

The shipping cost per unit from each plant to each distribution center is as follows:

Distribution Centers

Plant Site Boston Atlanta Houston

Detroit 5 2 3

Toledo 4 3 4

Denver 9 7 5

Kansas City 10 4 2

St. Louis 8 4 3

Management wants to run a model that allows for any plant or set of plants to be open so that total cost is minimized. The variable costs for the proposed plant locations are estimated to be the following: Detroit ($4.26), Toledo ($4.19), Denver ($4.69), and Kansas City ($4.20). The fixed and variable costs for St. Louis are estimated to be $334,875 and $4.29, respectively.

The optimal solution is to keep St. Louis and add Kansas City with a total annual cost of $1,491,575.

The second-best solution is to open Detroit, Toledo, and Kansas with a total annual cost of $_______________.

What is the total annual cost of the second-best solution?