Derby's Ornaments sells handmade ornaments for $30 per ornament. Operating income for 2020 is as follows: (Click the icon to view the income statement.) Derby, the owner of the company, wants to increase operating income over the next year by a least $20,000. To do so, the company is considering the following options: (Click the icon to view the options.) Read the requirement. Data table More info Sales revenue ($30 per ornament) $ 390,000 260,000 Variable cost ($20 per ornament) 1. 2. 3. Contribution margin 130,000 52,000 Evalua Fixed cost es or a mi 4. $ 78,000 Operating income live Spend $10,000 on advertising, which should result in a 10% increase in sales. Increase selling price to $40 per ornament, which is expected to decrease sales by 10%. Automate some steps in the manufacturing process, which would increase fixed costs by $32,000 and decrease variable cost to $15.00 per unit. Sales would remain the same. Increase the selling price to $32 and decrease variable costs to $18. This alternative would result in a 15% decrease in sales.