$\backslash$table$[[$Selling and Administrative,$11,000\_],[$Total Variable Costs,$36,200],[$Contribution Margin,$22,600],[$Fixed Costs:,$12,500],[$Manufacturing$,8,700\_],[$Selling and Administrative,$21,200],[$Total Fixed Costs,$$1,400],[$Operating Income,$$]]$ Homework $1-$ Special Pricing

Big City Seat Cushions Inc. makes seat cushions for outdoor furniture. Big City's contribution margin

income statement for the month ended March $31,2019$ is presented below:

Big City gets a phone call from Worldwide Outdoor Furniture. They are interested in buying $480$

cushions from Big City. Acceptance of the order will not increase Big City's variable selling and

administrative costs. Big City has enough unused plant capacity to manufacture the additional cushions $($so

no increase in fixed costs$).$

$4,200$ units $=$ $$6$ per unit var. man. cost

Big City gets a phone call from Worldwide Outdoor Furniture. They are interested in buying $480$ cushions from Big City. Acceptance of the order will not increase Big City's variable selling and administrative costs. Big City has enough unused plant capacity to manufacture the additional cushions $($so no increase in fixed costs$).$

Worldwide has offered $$7$ per cushion, which is below the normal sales of $$14$ per cushion.

$\backslash$table$[[$Differential Analysis$],[$$$3,360,],[$Expected Increase in fixed cost,$],[$Expected Increase or $($decrease$)$ in operating income,$$6\mathrm{.}2=]]$ what is number $6?$