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Athena's Ornaments sells handmade ornaments for $30 per ornament. Operating income for 2020 is as follows: (Click the icon to view the income statement.) Evaluate
Athena's Ornaments sells handmade ornaments for $30 per ornament. Operating income for 2020 is as follows: (Click the icon to view the income statement.) Evaluate each of the alternatives considered by Athena's Ornaments. (Use parentheses or Athena, the owner of the company, wants to increase operating income ove by at least $20,000. To do so, the company is considering the following opti (Click the icon to view the options.) Read the requirement. More info 1. Spend $25,000 on advertising, which should result in a 5% increase in sales. 2. Increase selling price to $49 per ornament, which is expected to decrease sales by 5%. 3. Automate some steps in the manufacturing process, which would increase fixed costs by $40,000 and decrease variable cost to $15.00 per unit. Sales would remain the same. 4. Increase the selling price to $34 and decrease variable costs to $18. This alternative would result in a 5% decrease in sales
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