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: Sales Revenue. Cost of Goods sold Variable costs Fixed costs Gross Profit Operating Expenses Variable Fixed Net income Book Division $ 7,820,000 2,020,000 1,079,500 Magazine Division $ 3,308,500 1,007,000 1,205,200 $ 1,096,300 $ 4,720,500 137,000 2,918,000 $ 1,665,500 $ 200,900 1,190,100 Total $ 11,128,500 3,027,000 2,284,700 $ 5,816,800 337,900 4,108,100 (294,700) $ 1,370,800 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? Present the financial information in the form of a segmented income statement (using the contribution margin approach). Book Division Magazine Division Total Sales revenue Variable costs Cost of goods sold Operating expenses Direct fixed costs Common fixed costs Common fixed costs Cost of goods sold Manufacturing costs. Non operating expenses Operating expenses Required 1 Required 2 What will be the impact on net income if the Magazine Division is eliminated? Impact on net income Required 2 > increase decrease