Increased AoE dmg mechanics

hi guys ran through forum search on this quickly, could not find any.(if I missed something I apologize in advance as i doubt this wasn't discused before)

How do inc aoe damage and "normal" melee damage modifiers interact?

Say 1000 DPS on skill with melee splash
+100% increased melee damage
+20% increased aoe damage

1. It says increased so the damage %'s are additive. -> results in 1000 * 2,2 = 2200 DPS
2. It increases the aoe damage that is already calculated with MS ->(1000 * 2) * 1,2 = 2400

I know it says increased so it should be the first one but then again the AoE is created after the damage gets "used" by skill? Or is there third option I'm not seeing?

First, increased always stacks additively. GGG has implemented some very funny damage calculations to make sure it is always additive.

:( hopes are perished