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:

Prepare income statements segmented by client categories. Include a column for the entire firm in the statement.

Net Income $Answer

Income Statement For Month of July Sales Less variable costs Contribution margin Less fixed expenses $900,000 (601,000) 299,000 Service $70,000 Selling and administrative 65,000 (135,000) Net income $164,000 The sales, contribution margin ratios, and direct fixed expenses for the three types of services are as follows: Sales Contribution margin ratio Direct fixed expenses of services Allocated common fixed service expenses Hospitals Physicians Nursing Care $300,000 30% $13,000 $1,500 $310,000 $290,000 30% 4096 $18,000 21,000 $1,000 $1,000