Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to question 4 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: 1 points Book Division $ 8,060,000 Magazine Division $ 3,410,000 Total $ 11,470,000 Sales Revenue Cost of Goods sold Variable costs Fixed costs Gross Profit Operating Expenses Variable Fixed Net income 2,260,000 1,103,500 $ 4,696,500 1,126,600 1,267,000 $ 1,016,400 3,386,600 2,370,500 $ 5,712,900 161,000 2,942,000 $ 1,593,500 236,100 1,203,500 (423,200) 397,100 4,145,500 $ 1,170,300 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? Return to question 4 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? 1 points 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). Book Division Magazine Division S 8,060,000 $3,410,000 Total $ 11,470,000 Sales revenue Variable costs Cost of goods sold Operating expenses 2,260,000 161,000 1,126,600 236,100 3,386,600 397,100 Direct fixed costs Manufacturing costs Operating expenses 220,700 1,765,200 253,400 722,100 474,100 2,487,300 Common fixed costs Manufacturing costs Operating expenses 882,800 1,176,800 1,013,600 1,896,400 481,400 1.658,200 Net income (loss) S 1,593,500 $ (423,200) $ 1.170,300 Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to question 4 Book Division $ 8,868,888 Magazine Division $ 3,410, eae Total $ 11,478,888 1 points Sales Revenue Cost of Goods sold Variable costs Fixed costs Gross Profit Operating Expenses Variable Fixed Net income 2,260, eea 1,103,500 $ 4,696,500 1,126,600 1,267,638 $ 1,016,400 3,386,600 2,378,500 $ 5,712,900 161, ees 2,942,000 $ 1,593,588 236,100 397,100 1,203,500 4, 145, see $ (423,298) $ 1,170,300 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? X Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 What will be the impact on net income if the Magazine Division is eliminated? Impact on net income $ 1,071,800 1,071,800 decrease
