Please answer the following question based on the given information here:

$2.$ Break$-$Even Analysis: Jennings Company

A product at the Jennings Company enjoyed reasonable sales volumes, but its contributions to profits were disappointing. Last year, $17,500$ units were produced and sold. The selling price is $$22$ per unit, the variable cost is $$18$ per unit, and the fixed cost is $$80,000.$ Jennings is considering two alternatives. Assume each alternative is equally costly to implement.

Alternative $1$: Increase current sales by $30\%$

Alternative $2$: Variable cost reduced to $85\%$ of its current level

Which alternative leads to higher contributions to profits?

Group of answer choices

Alternative $2$

Alternative $1$

Flag question: Question $17$

Question $171$ pts

What is the magnitude of difference in profits of both alternatives?

Group of answer choices

$26,250$

$22,000$

$48,250$

$11,000$

$37,250$