Question 10 of 24 Derby's Ornaments sells handmade ornaments for $45 per ornament. Operating income for 2020 is as follows (Click the icon to view the income statement.) This question: 3 point(s) possible Derby, the owner of the company, wants to increase operating income over the next year by at least $20,000 To do so, the company is considering the following options: Data table o view the options.) Xnt. Sales revenue ($45 per ornament) Variable cost ($25 per ornament) $ 720,000 400,000 More info Contribution margin 320,000 1. 192,000 Fixed cost 2. Evaluate each of the alternatives considered by Derby's Ornaments (U $ 128,000 3. Operating income Alternative Alternative Alternativ Spend $25,000 on advertising, which should result in a 20% increase in sales. Increase selling price to $47 per ornament, which is expected to decrease sales by 5%. Automate some steps in the manufacturing process, which would increase fixed costs by $32,000 and decrease variable cost to $20.00 per unit. Sales would remain the 2 3 4. same Increase the selling price to $49 and decrease variable costs to $20. This alternative would result in a 15% decrease in sales. Sales revenue Variable cost Contribution margin Fixed cost Operating income (loss) Do any of the options meet or exceed Derby's targeted increase in income of $20,000? I Alternative Meet or Exceed? Print Done Print Done Next