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Anderson Pubishing has two divisiors: Book Publishing and Magazine Publishing. The Magazine division has been losing money for the -inst five years and Anderson is
Anderson Pubishing has two divisiors: Book Publishing and Magazine Publishing. The Magazine division has been losing money for the -inst five years and Anderson is considering eliminating that division. Anderson's information about the two divisions is as folows Ony 20 percent of the foved manufecturing costs and 60 percent of the fixed operating expenses are directly attributable to each division. The remaining are common or shared between the two divisions. Required: 1. Compute the contribution margin and the segment margin of each division and the company as a whole. 2. What will be the impsct on net income if the Magszine Division is eliminated? Complete this question by entering your answers in the tabs below. Compute the montrubtice margin and segment margin for each division and the company an a whole. Anderson Publishing has two divisions Book Publishing and Magazine Publishing. The Magazine division has been losing money for the last five years and Anderson is concidering eliminating that division. Anderson's information about the two divisions is as follows: Only 20 percent of the fixed manufacturing costs and 60 percent of the foxed operating expenses are directly attriburable to each division. The remaining are common or shared between the two divisions. Required: 1. Compute the contribution margin and the segment margin of each division and the compary ot a whole. 2. What wil be the impact on net income if the Magazine Division is eliminated? Complete this question by entering your answers in the tabs below. What whl be the impact on net inceme of the Magarine Division is elimnated
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