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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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