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 $7,960,000 Magazine Division $ 3,367,700 Total $21,327,700 Sales Revenue Coat of Goods sold Variable costs Fixed costa Gross Profit Operating Expenses Variable Faxed Net Income 2,260,000 1,093,500 39,706,300 1,076, 800 1,241,200 5 1.049,700 3,236,800 2,334,700 F 5,756,200 151.000 2, 932.000 G623,300 221.500 1,197.900 (369,700) 372,500 6.229.900 G25000 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? Present the financial information in the form of a segmented income statement (using the contribution margin approach). Book Division Magazine Division Total 7,960,000 $ 3,367,000 5 11,327,000 Variable costs Cost of goods sold 2,160,000 1.076,800 3,236,800 Operating expenses Contribution margin Direct foxed costs Common fixed costs Net income (loss) What will be the impact on net income if the Magazine Division is eliminated? Impact on net income