Sheridan Jewelry is considering two mutually exclusive product lines, either an emerald ring or a ruby bracelet, which will be introduced next year. The board of directors of the company has established a target net income of $19000 for the new product line but wishes to maximize profit in any case. For the emerald ring line, Sheridan expects to sell 200 rings during the year at a selling price per ring of $1360. Estimated variable costs are $730 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 $995 per bracelet. Fixed costs will amount to $110000 for the year, and the variable costs will also be $730 each. Sheridan Jewelry will have a tax rate of 30% next year. Which one of the following statements is correct? O Sheridan should produce and sell bracelets, since the bracelets will generate more net income than the rings and exceed targeted net income by $6200. O Sheridan should produce and sell rings even though this will result in a $6200 shortfall in targeted net income. O Sheridan should produce and sell bracelets, since the income from bracelets will exceed the income from rings and exceed the targeted net income by $32500. O Sheridan should produce and sell rings, since rings will generate more net income than bracelets and will exceed targeted net income by $6200. Save for Later Attempts: 0 of 1 used Submit