Check my work 4. E7-12 (Algo) Analyzing Keep-or-Drop Decision (LO 7-2, 7-5] 0.75 points 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: eBook Book Division $ 7,860,000 Magazine Division $ 3,325,400 Total $ 11, 185,400 Ask References Sales Revenue Cost of Goods sold Variable costs Fixed costs Gross Profit Operating Expenses Variable Fixed Net income 2,060,000 1,083,500 $ 4,716,500 1,026,900 1,215,500 $ 1,083,000 3,086,900 2,299,000 $ 5,799,500 141,000 2,922,000 $ 1,653,500 206,800 1,192,400 $ (316,200) 347,800 4,114,400 $ 1,337,300 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? 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 $ 7,860,000 $ 3,325,400 $ 11,185,400 Sales revenue Variable costs Cost of goods sold Operating expenses 2,060,000 141,000 1,026,900 206,800 3,086,900 347,800 5,659,000 2,091,700 7,750,700 Contribution margin Direct fixed costs Cost of goods sold Operating expenses 1,083,500 1,753,200 1,215,500 715,440 160,760 2,299,000 2,468,640 4,983,060 2,822,300 Common fixed costs Net income (loss) $ 1,337,300