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 Magazine Division Total Sales Revenue $ 7,940,000 $ 3,440,000 $ 11,380,000 Cost of Goods sold Variable costs 2,036,000 1,039,000 3,075,000 Fixed costs 78,900 214,000 292,900 Gross Profit $ 5,825,100 $ 2,187,000 $ 8,012,100 Operating Expenses Variable 149,000 212,000 361,000 Fixed 3,930,000 2,203,000 6,133,000 Net income $ 1,746,100 $ (228,000 ) $ 1,518,100 The variable operating expenses are directly attributable to the division. Of the total fixed costs (manufacturing and operating), $4,014,000 are shared between the divisions, allocated $2,825,000 to the Book Division and the remaining to the Magazine Division. The remainder of the fixed costs are directly attributable to each division. 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?