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Anderson Publishing has two divisions: Book Publishing & Magazine Publishing. The Magazine division has been losing money for the last 5 years and Anderson is considering eliminating that division. Anderson's information about the two divisions is as follows: Sales Revenue Cost of Goods sold Variable. Operating Expenses Variable Fixed 2,300,000 costs 1,146,600 3,446,600 Fixed costs 1,107,500 1,277,300 2,384,800 Gross Profit $4,692,500 $1,003,000 $5,695,5ee Book Division $8,100,000 165,000 407,000 2,946,000 4,151,800 Net income $1,581,500 $ (444,800) $1,136,700 Only 20 percent of the fixed manufacturing costs and 60 percent of the fixed operating expenses are directly attribute to each division. The remainder are common or shared between the two divisions. Required: 1. Present the financial information in the form of a segmented income statement (using the contribution margin approach) 2. What will be the impact on net income if the Magazine Division is eliminated? Sales revenue Variable costs Magazine Division Total $3,426,900 $11,526,900 Complete this question by entering your answers in the tabs below. Required Required 1 2 Present the financial information in the form of a segmented income statement (using the contribution margin approach). Operating expenses Direct fixed costs 242,000 1,205,800 Common fixed costs Net income (loss) Book Division Magazine Division Required Total Required 2 >

Anderson Publishing has two divisions: Book Publishing & Magazine Publishing. The Magazine division has been losing money for the last 5 years and Anderson is considering eliminating that division. Anderson's information about the two divisions is as follows: Sales Revenue Cost of Goods sold Variable Magazine Division $8,100,000 $3,426,900 Book Division 2,300,000 1,146,600 costs Fixed costs 1,107,500 Gross Profit $4,692,500 Operating Expenses Variable Total $11,526,900 3,446,600 1,277,300 2,384,800 $1,003,000 $5,695,500 165,000 242,000 407,000 Fixed 2,946,000 1,205,800 4,151,800 Net income $1,581,500 $(444,800) $1,136,700 Only 20 percent of the fixed manufacturing costs and 60 percent of the fixed operating expenses are directly attribute to each division. The remainder are common or shared between the two divisions. Required: 1. Present the financial information in the form of a segmented income statement (using the contribution margin approach). 2. What will be the impact on net income if the Magazine Division is eliminated? Complete this question by entering your answers in the tabs below. Required Refuired What will be the impact on net income if the Magazine Division is eliminated? Impact on net income < Required 1 Required 2