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 $ 8,100,000 Magazine Division $ 3,426,900 Total $ 11,526,900 Sales Revenue Cost of Goods sold Variable costs Fixed costs Gross Profit Operating Expenses Variable Fixed Net income 2,300,000 1,107,500 $ 4,692,500 1,146,600 1,277, 300 $ 1,003,000 3,446,600 2,384,800 $ 5,695,500 165,000 2,946,000 1,581,500 242,000 1,205,800 (444, 800) 407,000 4,151,800 $ 1,136,700 $ $ 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? Required 1 Required 2 Present the financial information in the form of a segmented income statement (using the contribution margin approach). Book Division Magazine Total Division $ 8,100,000 $ 3,426,900 $ 11,526,900 Sales revenue Variable costs Cost of goods sold Operating expenses 2,300,000 1,146,600 242,000 3,446,600 407,000 165,000 Direct fixed costs Operating expenses Manufacturing costs Common fixed costs Operating expenses Net income (loss) Common fixed costs Cost of goods sold Manufacturing costs Non operating expenses Manufacturing costs Non operating expenses Operating expenses Sales revenue Service revenue Required 1 Required 2 What will be the impact on net income if the Magazine Division is eliminated? Impact on net income