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Income Statements Segmented by Products Clay Consulting Firm provides three types of client services in three health-care-related industries. The income statement for July is as
Income Statements Segmented by Products Clay Consulting Firm provides three types of client services in three health-care-related industries. The income statement for July is as follows:
Clay Consulting Firm Income Statement For Month of July | ||
---|---|---|
Sales | $900,000 | |
Less variable costs | (606,000) | |
Contribution margin | 294,000 | |
Less fixed expenses | ||
Service | $70,000 | |
Selling and administrative | 65,000 | (135,000) |
Net income | $159,000 |
The sales, contribution margin ratios, and direct fixed expenses for the three types of services are as follows:
Hospitals | Physicians | Nursing Care | |
---|---|---|---|
Sales | $360,000 | $240,000 | $300,000 |
Contribution margin ratio | 30% | 40% | 30% |
Direct fixed expenses of services | $24,000 | $19,000 | $15,000 |
Allocated common fixed service expenses | $1,000 | $1,000 | $1,500 |
Prepare income statements segmented by client categories. Include a column for the entire firm in the statement.
Use negative signs with all answers relating to expenses and costs.
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