A.The Iberia Tire Company has 3,000 tires in its inventory which are considered obsolete.Each tire originally cost the company $35 and the normal selling price was $45 per tire. Management is considering two options to reduce these inventory levels. Option one is to sell the tires directly to car dealerships for $30 per tire. Option two is to sell the tires to customers for $35 per tire but this option would require advertising costing an additional $24,000 to advertise the sale. They predict that either option will rid them completely of their excess inventory. If management decides to go with Option one, the difference in profits relative to Option two is(provide the amount of the difference and circle whether Option one results in higher or lower profits):

$_________ Option 1 vs. Option 2 DifferenceHigher/Lower(circle or highlight one)