Vandenberg Company retains workers compensation medical expenses. The risk manager ran a regression using workers compensation medical costs as the dependent variable and company payroll $($in actual dollars$)$ as the independent variable. Results of the regression were:

y $=\mathrm{.}098$ x $+5\mathrm{.}20$

Next year$$s payroll is expected to be $$3,750,000.$ As medical costs continue to rise at a rate higher than inflation, the risk manager would like to adjust the expected medical costs upward by $10\%.$ Based on this information, what are the expected workers compensation medical costs for next year?