following 6. Item N29 is used by Tyner Corporation to make one of its products. A total of 11,000 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 Direct materials Direct labor Variable manufacturing overhead Supervisor's salary Depreciation of special equipment Allocated general overhead Per Unit $5.90 170 5.40 2.60 320 3.30 An outside supplier has offered to make Item N29 and sell it to the company for $21.20 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 tem N29 could be used to make more of one of the company's other products, generating an additional segment margin of $29,000 per year for that product. What would be the impact on the company's overall net operating income of buying em N29 from the outside supplier? per Net operating income would decline by 538,900 year. 8. Net operating income would increase by $29,000 per year. C. Net operating income would decline by $32.600 per year. D. Net operating income would increase by $19,300 per year. 7. Under full absorption costing, which of the following are included in product costs? A. Only direct materials and direct labor Only variable manufacturing costs C. Only conversion costs D. All fixed and variable manufacturing costs. Dartmount Corporation has provided its contribution format income statement for June. The company produces and sells a single product Sales (2.900 units) Variable costs Contribution margin Fixed costs Operating profit $ 265,700 107,300 162,400 137,100 $ 25.300 If the company sells 3,100 units, its total contribution margin should be closest to $27,045 5181,000 C. $162,400 0.5173,600