please help me with all working thanks Anderson Publishing has two divisions: Book Publishing and Magazine Publishing. The Magazine division has been losing money for the last five years and Anderson is considering eliminatingthat division. Anderson's information about the two divisions is as follows:Book Division Magazine Division Total$ 8,160,000 $3,452,300$ 11,612,300Sales RevenueCost of Goods soldVariable manufacturing costs 2,360,000Fixed manufacturing costs 1,113,500Gross ProfitOperating Expenses1,176,5001,292,700$ 4,686,500 $983,100250,8001,209,1003,536,5002,406,200$ 5,669,600Variable operating expenses 171,000421,8004,161,100Fixed operating expenses 2,952,000Net income$ 1,563,500 $ (476,800)$ 1,086,700Only 20 percent of the fixed manufacturing costs and 60 percent of the fixed operating expenses are directly attributable to each division. The remaining are common or shared between thetwo divisions.Required:1. Compute the contribution margin and the segment margin of each division and the company as a whole.2. What will be the impact on net income if the Magazine Division is eliminated?

Business companies compile income statements in order to determine how much net income they generate…

Anderson Publishing has two divisions: Book Publishing and Magazine Publishing. The Magazine division has been losing money for the last five years and Anderson is considering eliminat that division. Anderson's information about the two divisions is as follows: Total $ 11,612,300 Book Division Magazine Division $3,452,300 $ 8,160,000 Sales Revenue Cost of Goods sold Variable manufacturing costs 2,360,000 1,176,500 Fixed manufacturing costs 1,113,500 1,292,700 $ 4,686,500 $983,100 Gross Profit Operating Expenses 3,536,500 2,406,200 $ 5,669,600 Variable operating expenses 171,000 250,800 421,800 4,161,100 Fixed operating expenses 2,952,000 1,209,100 Net income $1,563,500 S (476,800) $ 1,086,700 Only 20 percent of the fixed manufacturing costs and 60 percent of the fixed operating expenses are directly attributable to each division. The remaining are common or shared between th two divisions. Required: 1. Compute the contribution margin and the segment margin of each division and the company as a whole. 2. What will be the impact on net income if the Magazine Division is eliminated?

Anderson Publishing has two divisions: Book Publishing and Magazine Publishing. The Magazine division has been losing money for the last five years and Anderson is considering eliminat that division. Anderson's information about the two divisions is as follows: Total $ 11,612,300 Book Division Magazine Division $3,452,300 $ 8,160,000 Sales Revenue Cost of Goods sold Variable manufacturing costs 2,360,000 1,176,500 Fixed manufacturing costs 1,113,500 1,292,700 $ 4,686,500 $983,100 Gross Profit Operating Expenses 3,536,500 2,406,200 $ 5,669,600 Variable operating expenses 171,000 250,800 421,800 4,161,100 Fixed operating expenses 2,952,000 1,209,100 Net income $1,563,500 S (476,800) $ 1,086,700 Only 20 percent of the fixed manufacturing costs and 60 percent of the fixed operating expenses are directly attributable to each division. The remaining are common or shared between th two divisions. Required: 1. Compute the contribution margin and the segment margin of each division and the company as a whole. 2. What will be the impact on net income if the Magazine Division is eliminated?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter18: Pricing And Profitability Analysis

Section: Chapter Questions

Problem 41P: Shannon, Inc., has two divisions. One produces and sells paper party supplies (napkins, paper...

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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 $ 7,800,000 $ 3,300,000 $ 11,100,000 Cost of Goods sold Variable costs 2,000,000 997,000 2,997,000 Fixed costs 1,077,500 1,200,000 2,277,500 Gross Profit $ 4,722,500 $ 1,103,000 $ 5,825,500 Operating Expenses Variable 135,000 198,000 333,000 Fixed 2,916,000 1,189,000 4,105,000 Net income $ 1,671,500 $ (284,000 ) $ 1,387,500 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…
Anderson Publishing has two divisions: Book Publishing and Magazine Publishing. The Magazine division has been losing money for the last five 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 $ 8,160,000 $ 3,452,300 $ 11,612,300 Cost of Goods sold Variable manufacturing costs 2,360,000 1,176,500 3,536,500 Fixed manufacturing costs 1,113,500 1,292,700 2,406,200 Gross Profit $ 4,686,500 $ 983,100 $ 5,669,600 Operating Expenses Variable operating expenses 171,000 250,800 421,800 Fixed operating expenses 2,952,000 1,209,100 4,161,100 Net income $ 1,563,500 $ (476,800) $ 1,086,700 Only 20 percent of the fixed manufacturing costs and 60 percent of the fixed operating expenses are directly attributable to each division. The remaining are common or shared between the two divisions. Required: Compute the contribution margin and the…
Anderson Publishing has two divisions: Book Publishing and Magazine Publishing. The Magazine division has been losing money for the last five 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 $ 7,840,000 $ 3,316,900 $ 11,156,900 Cost of Goods sold Variable manufacturing costs 2,040,000 1,016,900 3,056,900 Fixed manufacturing costs 1,081,500 1,210,300 2,291,800 Gross Profit $ 4,718,500 $ 1,089,700 $ 5,808,200 Operating Expenses Variable operating expenses 139,000 203,900 342,900 Fixed operating expenses 2,920,000 1,191,200 4,111,200 Net income $ 1,659,500 $ (305,400) $ 1,354,100 Only 20 percent of the fixed manufacturing costs and 60 percent of the fixed operating expenses are directly attributable to each division. The remaining are common or shared between the two divisions. Required: Present the financial information in…
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: Magazine Division Total Book Division $ 7,810,000 $ 3,310,000 $11,120,e00 Sales Revenue Cost of Goods sold Variable costs Fixed costs 3,003,000 278,600 2,003,000 77,600 $ 5,729,400 1,000,000 201,eee 2,109,e0e Gross Profit Operating Expenses Variable $ 7,838,400 136,000 3,917,000 $ 1,676,400 199,000 2,190,000 $ 335,000 6,107,000 $ 1,396,400 Fixed (280,eee) Net income The variable operating expenses are directly attributable to the division. Of the total fixed costs (manufacturing and operating), $4,001,000 are shared between the divisions, allocated $2,812,000 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…
Anderson Publishing has two divisions: Book Publishing and Magazine Publishing. The Magazine division has been losing money for the last five years and Anderson is considering eliminating that division. Anderson's information about the two divisions is as follows: Sales Revenue Cost of Goods sold Variable manufacturing costs Fixed manufacturing costs Gross Profit Operating Expenses Variable operating expenses Fixed operating expenses Net income Book Division $ 7,960,000 2,160,000 1,093,500 $4,706,500 151,000 2,932,000 $ 1,623,500 Contribution Margin Segment Margin Book Division Magazine Division $ 3,367,700 Complete this question by entering your answers in the tabs below. 1,076,800 1,241,200 $ 1,049,708 Only 20 percent of the fixed manufacturing costs and 60 percent of the fixed operating expenses are directly attributable to each division. The remaining are common or shared between the two divisions Required: Required 1 Required 2 Compute the contribution margin and segment margin…
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