E7-12 (Algo) Analyzing Keep-or-Drop Decision (LO 7-2, 7-5] 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 $ 8.800,000 Magazine Division $3,384,600 Total $ 11,384,600 Sales Revenue Cost of Goods sold Variable costs Fixed costs Gross Profit Operating Expenses Variable Fixed Net Income 2,200,000 1.097,500 $24.702,500 1,096,700 1,251,560 1.036.400 3,296,700 2,349,600 $5,238,900 5 155,000 2,936.000 $1,611,500 227,300 1,200,200 391, 100 382, 380 4.136,200 $1,220,400 $ 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? Che 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 8,000,000 $ 3.384 600 5 11.384 600 Sales revenue Variable costs Cost of goods sold Operating expenses Contribution margin Direct foxed costs Cost of goods sold Operating expenses Segment margin Common foxed costs Not Income loss) Required 2 > 1051 3 years au AISURIS LUISUy any OE GIVISION. MUESIT TOUR DU LIELWU UIVISIONS IS OSTUHUWS Check Book Division $8,000,000 Magazine Division 3,384,600 $ Total 5 11,384,600 Sales Revenue Cost of Goods sold Variable costs Fixed costs Gross Profit Operating Expenses Variable Fixed Net income 2,200,000 1,097,500 54,702,500 1,096,700 1,251,500 1,036,400 3,296,700 2,349,000 $5,738.900 $ 155,000 2,936,000 1,611 500 227.300 1,200,200 391 100) 382,300 4,136,200 $1,220 400 $ 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? es 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 not income Required 1