Anderson Publishing has two divisions, Book Pubilishing and Magazine Publishing. The Magazine division has been...
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Anderson Publishing has two divisions, Book Pubilishing 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: 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: 1. Compute the contribution margin and the segment margin of each division and the company as a whole. 2. What wil be the impact on net income if the Magazine Division is eliminated? Complete this question by entering your answers in the tabs below. Compute the contribution margin and segment margin for each division and the company as a whole
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