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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: Book Division $ 7,800,000 Magazine Division $ 3,300,000 Total $ 11,100,000 Sales Revenue Cost of Goods sold Variable costs Fixed costs Gross Profit Operating Expenses Variable Fixed Net income 2,000,000 77,500 $ 5,722,500 997,000 200,000 $ 2,103,000 2,997,000 277,500 $ 7,825,500 135,000 3,916,000 $ 1,671,500 198,000 2,189,000 (284,000) 333,000 6,105,000 $ 1,387,500 $ The variable operating expenses are directly attributable to the division. Of the total fixed costs (manufacturing and operating), $4,000,000 are shared between the divisions, allocated $2,811,000 to the Book Division and the remaining to the Magazine Division. The remainder of the fixed costs are directly attributable to each division. 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 1 Required 2 Present the financial information in the form of a segmented income statement (using the contribution margin approach). Book Division Magazine Division Total Variable costs Direct fixed costs Net income (loss) Complete this question by entering your answers in the tabs below. Required 1 Required 2 What will be the impact on net income if the Magazine Division is eliminated? Impact on net income