At Community Hospital the Average Admission Will Create a File

At Community Hospital the average admission will create a file that will take up 0.25 inch of file space. Each new ER record requires 0.125 inch of filed space. Approximately 25,000 new patients are admitted per year and 15,000 ER patients are treated per year. The shelving cost is $1.05 per filing inch. How much money should be allocated for storage space in next year's budget?

A) $8,531.25
B) $8,125.00
C) $853.25
D) $1,875.00