8. The operations of Bridgeton Corporation are divided into the Adams Division and the Carter Division. Projections for the next year are as follows:

	Adams Division				Carter Division					Total
Sales	$	580,000			$	344,000			$	924,000
Variable costs		200,000				158,000				358,000
Contribution margin	$	380,000			$	186,000			$	566,000
Direct fixed costs		172,000				144,000				316,000
Segment margin	$	208,000			$	42,000			$	250,000
Allocated common costs		83,000				67,000				150,000
Operating income (loss)	$	125,000			$	(25,000	)		$	100,000

Operating income for Bridgeton Corporation as a whole if the Carter Division were dropped would be:

7. Item N29 is used by Tyner Corporation to make one of its products. A total of 12,900 units of this Item are produced and used every year. The company's Accounting Department reports the following costs of producing Item N29 at this level of activity:

	Per Unit
Direct materials	$	7.80
Direct labor		3.60
Variable manufacturing overhead		6.35
Supervisors salary		3.55
Depreciation of special equipment		5.10
Allocated general overhead		3.70

An outside supplier has offered to make Item N29 and sell it to the company for $28.80 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including the direct labor, can be avoided. The special equipment used to make the Item was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company, none of which would be avoided if the Items were purchased instead of produced internally. In addition, the space used to make Item N29 could be used to make more of one of the company's other products, generating an additional segment margin of $30,900 per year for that product. What would be the impact on the company's overall net operating income of buying Item N29 from the outside supplier?