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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:
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:
Sales | $340,000 | $260,000 | $300,000 |
Contribution margin ratio | 30% | 40% | 30% |
Direct fixed expenses of services | $22,000 | $17,000 | $11,000 |
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 signswith all answers relating to expenses and costs.
Sales | $Answer | $Answer | $Answer | $Answer |
Variable costs | Answer | Answer | Answer | Answer |
Contribution margin | Answer | Answer | Answer | Answer |
Direct fixed expenses | Answer | Answer | Answer | Answer |
Product margin | Answer | Answer | Answer | Answer |
Allocated common costs | Answer | Answer | Answer | Answer |
Product income | $Answer | $Answer | $Answer | Answer |
Unallocated common expenses: | ||||
Selling and administrative | Answer | |||
Service (less allocated expenses/costs) | Answer | |||
Total | Answer | |||
Net income | $Answer |
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