Worldwide has offered $7 per cushion, which is below the normal sales of $14 per cushion. Differential Analysis$3,360Expected Increase in fixed cost0 Expected Increase or (decrease) in operating income $ 6._______________

Blue Bird Ice Cream processes milk into ice cream to sell to retirement homes in one-gallon containers. Each batch, processed at a cost of $600, yields 800 gallons of plain ice cream. Blue Bird sells the one-gallon tubs for $10 each, and spends $0.25 for each tub container. The company is considering a different strategy as there is demand for individual size portions with crunchy nuts added. Blue Bird can further process each batch into 15,000 individual portions that would sell for $0.90. The packaging for the smaller portion would cost $0.10 per carton and the crunchy nuts would cost $.15 (15 cents) per portion. Fixed cost would not changeTotal Net Revenue $ 7. ____________ $9,750 $ 8.______________