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 $ 8,200,000 Sales Revenue Cost of Goods sold Variable costs Fixed costs Gross Profit Operating Expenses Variable Fixed Net Income Magazine Division $ 3,469,200 1,196,400 1.303,000 $ 969,800 2,400.000 1.117,500 5.4,682,500 175,000 2,956,000 51105,500 Total $11,669,200 3,596,400 2,420,500 $ 5,652,300 431,700 4,167,400 511,85:200 256,700 1,211,400 5498,300) 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? 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), Book Division Magazine Division Total Sales revenue Variable costs Directed costs 4 Complete this question by entering your answers in the tabs below. 125 points Required 1 Required 2 Present the financial Information in the form of a segmented income statement (using the contribution margin approach), Magazine Book Division Total Division Sales revenue Variable costs eBook Print References Direct fixed costs Common fixed costs Net Income (loss) Required 2 > 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: Magazine Book Division 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 Faxed costs 1.117,500 1,303,000 2,420,500 Gross Profit $ 4,682,500 $ 969,800 5.5,652 300 Operating Expenses Variable 175.000 256, 700 431,700 Fixed 2,956,000 1,711,400 4,167,400 Net income 51.551.5ea S498,300) 5,053,280 Only 20 percent of the fixed manufacturing costs and 60 percent of the fived 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? Complete this question by entering your answers in the tabs below. Required Required 2 What will be the impact on net income if the Magazine Division is eliminated? impact on income (Required 1
