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 considering eliminating that division. Andersons information about the two divisions is as follows:

	Book Division	Magazine Division	Total
Sales Revenue	$ 7,940,000	$ 3,359,200	$ 11,299,200
Cost of Goods sold
Variable manufacturing costs	2,140,000	1,066,800	3,206,800
Fixed manufacturing costs	1,091,500	1,236,100	2,327,600
Gross Profit	$ 4,708,500	$ 1,056,300	$ 5,764,800
Operating Expenses
Variable operating expenses	149,000	218,500	367,500
Fixed operating expenses	2,930,000	1,196,800	4,126,800
Net income	$ 1,629,500	$ (359,000)	$ 1,270,500

Only 20 percent of the fixed manufacturing 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 impact on net income if the Magazine Division is eliminated?