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. Andersons information about the two divisions is as follows:

	Book Division				Magazine Division				Total
Sales Revenue	$	8,200,000			$	3,469,200			$	11,669,200
Cost of Goods sold
Variable costs		2,400,000				1,196,400				3,596,400
Fixed costs		1,117,500				1,303,000				2,420,500
Gross Profit	$	4,682,500			$	969,800			$	5,652,300
Operating Expenses
Variable		175,000				256,700				431,700
Fixed		2,956,000				1,211,400				4,167,400
Net income	$	1,551,500			$	(498,300	)		$	1,053,200

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?

4 Required 1 Required 2 Present the financial information in the form of a segmented income statement (using the contribution margin approach). 1.25 points Book Division Magazine Division Total eBook Variable costs Print References Direct fixed costs Common fixed costs Net income (loss) (Required 1 Required 2 > 4 Required 1 Required 2 What will be the impact on net income if the Magazine Division is eliminated? 1.25 points Impact on net income