Sandhill Jewelry is considering two mutually exclusive product lines, based on either an emerald ring or a ruby bracelet, to introduce next year. The board of directors of the company has established a target net income of $21000 for the new product line but wishes to maximize profit in any case. For the emerald ring line, Sandhill expects to sell 200 rings during the year at a selling price per ring of $1390. Estimated variable costs are $745 per ring, and fixed costs will amount to $90000 for the year. For the ruby bracelet line, the company anticipates sales of 500 units at a selling price of $1015 per bracelet. Fixed costs will come to $110000 for the year, and the variable costs will also be $745 each. Sandhill Jewelry will have a tax rate of 30% next year. How much more or less will Sandhill have to spend in fixed costs on the proposed bracelet line in order for it to have the same net income as the ring product line?

O Sandhill need to reduce fixed costs on the bracelet line by $14000.

O Sandhill will need to spend $11700 more in fixed costs on the bracelet line.

O Sandhill will need to reduce fixed costs on the bracelet line by $7500.

O Sandhill will need to spend $7500 more in fixed costs on the bracelet line.