PROBLEM 1 - CVP Analysis Octopus Game Inc. produces an exclusive sport outfit that sells for $70 per pes. Operating income for 2021 is as follows: Outfit Sold 5,000 unit Sales revenue $350,000 Variable cost ($30 per bag) $150.000 Contribution margin $200,000 Fixed cost $100,000 Operating income $100,000 Octopus Game Inc. would like to increase its profitability over the next year by at least 20%. To do so, the company is considering the following separate options: Option 1: Replace a portion of its variable labor with an automated machining process. This would result in a 20% decrease in variable cost per unit but a 15% increase in fixed costs. Sales would remain the same. Option 2: Spend $25,000 on a new advertising campaign, which would increase sales by 10%. Option 3: Increase both selling price by $10 per unit and variable costs by $8 per unit by using a higher-quality leather material in the production of its shoes. The higher-priced shoe would cause demand to drop by approximately 20%. Option 4: Add a second manufacturing facility that would double Octopus Game Inc.'s fixed costs but would increase sales by 60%. Evaluate each of the options considered by Octopus Game Inc. Do any of the options meet or exceed Octopus Game Inc. targeted increase in income of 20%? What should Octopus Game Inc. do