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 mone last 5 years and Anderson is considering eliminating that division Anderson's information about the two divisions is as follows Book Division 18.100,000 MAT Division Total $11.526.320 tales Revenue cost of Good Hold Variable costs Pixed costs Gross Profit Operating Expenses Variable 2,500,000 1.107.500 14,692,500 1,146.666 1,272,300 1.000.000 3.445.650 2.334,600 15,695,500 165,000 2.945,050 11,501,500 242,000 107.000 1.265.000 6.151,30 (444,000 5 1,136,166 Not Income 5 Only 20 percent of the fixed manufacturing costs and 60 percent of the fixed operating expenses ate 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 Variable costs Directed costs Common fed costs Net income foss) Required) Check my 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 $ 8,100,000 Magazine Division 3,426,900 Total $11,526,900 Sales Revenue Cont of Goods sold Variable costs Pixed costs Gre Petit Operating Expenses Variable Fixed Net Locom 2,300,000 1,107,500 $4,692,500 1,146,600 1,272,300 1,000,000 3,445,600 2.284.800 $ 5,695,500 $ 165,000 2.946.000 $ 1,581,500 242.000 407.000 1,205,800 6.151.000 (444,800) $1,176,700 $ Only 20 percent of the fived 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 Recured 2 Present the financial information in the form of a segmented income statement (using the contribution margin approach). Book Division Magazine Division Total Variable Deco Comedo Net Mequired)

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 30.100.000 Magazine Division 52.426,900 Total $11,526,900 Sales Revenue Coat of Goods sold Variable conto Fixed costs Gross Profit Operating Expenses Variable Tixed Net Income 2,300,000 1.102.500 53,692,500 1,146,600 1,277, 300 1,003,000 3,446,600 2,384.800 55,695,500 5 165,000 2,846,000 5.1,581,500 242,000 1,205, 800 (44,800) 407.000 6,151,000 $1,135,700 $ Only 20 percent of the foxed manufacturing costs and 60 percent of the fixed operating expenses are directly attribute to eact 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 Require What will be the impact on net income if the Magazine Division is eliminated? Impact on net income