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 $ 7,900,000 Magazine Division $ 3,342,300 Total $ 11,242,300 Sales Revenue Cast of Goods sold Variable costs Fixed costs Gross Profit Operating Expenses Variable Fixed Net income 2,100,000 1,087,500 34,712,500 1,046,900 1,225,800 $ 1,069,600 3,146,900 2,313,300 $ 5,782,100 145,000 2,926,000 1,641,500 212,700 1,194,600 (337,700 357,700 4,120,600 $ 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? Book Division Magazine Division Total Variable costs Direct fixed costs Common fixed costs Net income (loss) 5 What will be the impact on net income if the Magazine Division is eliminated? Impact on net income