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A company is able to implement one of two strategies regarding a particular product: hire a marketing firm to increase sales 18% or assign a product procurement manager who can reduce material cost for the product by 5%. Currently, the product has sales of $9,800,000. The costs of materials are $6,500,000, labor costs are $1,200,000, and overhead costs are $600,000. What are the effects on net income of the two alternative strategies? The change in net income after the 18% increase in sales is $[ (Enter your response as a whole number.)