The selling price per box for Cynthia’s Cookies is $20.31. Fixed costs are $55,000 and the variable cost per box is $10.26. Cynthia’s Cookies must decide between two improvement options. Option 1 is spending $11,000 on a new online marketing campaign that is expected to increase last year’s sales (units) by 25 percent. Option 2 is to reduce varlable costs by 15 percent by spending $11,000 on equipment and process improvements. For Option 2, sales remain at 8,600 boxes. (The assumption here is that each option is equally costly to implement) What option provides the higher profits? Round your answers to the nearest cent.

Net profit from Option 1: $

Net profit from Option 2: $
-Select- provides the higher profits.
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