increase by $300 per month when she renews the policy next month. Marcy is considering three options for responding to the cost increases. 1. Keep her sales price at $20 and absorb the cost increases. This action will have no effect on sales volume. 2. Pass along the cost increase to her customers by increasing her sales price by $2.20. This price increase would result in a 3% drop in sales volume. Option 1 operating income $ Option 2 operating income $ Option 3 operating income $