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 (604,000) Contribution margin 296,000 Less fixed expenses Service $70,000 Selling and administrative 65,000 (135,000) Net income $161,000 The sales, contribution margin ratios, and direct fixed expenses for the three types of services are as follows: Hospitals Physicians Nursing Care Sales $340,000 $260,000 $300,000 Contribution margin ratio 30% 4096 3096 Direct fixed expenses of services $21,000 $15,000 $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. Do not use negative signs with your answers. Clay Consulting Firm Product and Company Income Statements For the Month of July Hospitals Physicians Nursing Care Company Totals Sales 340,000 $ 260,000 $ 300,000 $ 900,000 Variable costs 181,200 x 241,600 x 181,200 x 604,000 Contribution margin 102,000 78,000 x 90,000 299,000 x Direct fixed expenses 21,000 15,000 15,000 51,000 Product margin 81,000 63,000 x 75,000 219,000 x Allocated common costs 1,000 1,000 1,500 3,500 Product income 80,000 $ 62,000 X $ 73,500 215,500 x Unallocated common expenses: Selling and administrative 65,000 Service (less direct fixed expenses and allocated common costs) 61,500 x Total 89,000 x Net income $ 126,500 X