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 $ 7,900,000 $ 3,342,300 $ 11,242,300 Cost of Goods sold Variable costs 2,100,000 1,046,900 3,146,900 Fixed costs 1,087,500 1,225,800 2,313,300 Gross Profit $ 4,712,500 $ 1,069,600 $ 5,782,100 Operating Expenses Variable 145,000 212,700 357,700 Fixed 2,926,000 1,194,600 4,120,600 Net income $ 1,641,500 $ (337,700 ) $ 1,303,800 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 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 Answer is not complete 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) Total Magazine Book Division Division $ 7,900,000$ 3,342,300 Sales revenue $ 11,242,300 Variable costs Cost of goods sold Operating expenses 2,100,000 145,000 1,046,900 212,700 3,146,900 357,700 5,655,000 2,082,700 7,737,700 Contribution margin Direct fixed costs Cost of goods sold Operating expenses X 1,087,500 X 2 926,000 X 1,225,800 X 1,194,600 2,313,300 4,120,600 X 1,641,500 X (337,700) 1,303,800 X Segment margin Common fixed costs

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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

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	$	7,900,000	$	3,342,300		$	11,242,300
Cost of Goods sold
Variable costs		2,100,000		1,046,900			3,146,900
Fixed costs		1,087,500		1,225,800			2,313,300
Gross Profit	$	4,712,500	$	1,069,600		$	5,782,100
Operating Expenses
Variable		145,000		212,700			357,700
Fixed		2,926,000		1,194,600			4,120,600
Net income	$	1,641,500	$	(337,700	)	$	1,303,800

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? image text in transcribed

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? Answer is not complete. 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). Total Magazine Book Division Division $ 7,900,000$ 3,342,300 Sales revenue $ 11,242,300 Variable costs Cost of goods sold Operating expenses 2,100,000 145,000 1,046,900 212,700 3,146,900 357,700 5,655,000 2,082,700 7,737,700 Contribution margin Direct fixed costs Cost of goods sold Operating expenses X 1,087,500 X 2.926,000 X 1,225,800 X 1,194,600 2,313,300 4,120,600 X 1,641,500 X (337,700) 1,303,800 X Segment margin Common fixed costs