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 Less variable costs Contribution margin $900,000 (604,000) 296,000 Less fixed expenses Service Selling and administrative Net income $70,000 65,000 (135,000) $161,000 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 $340,000 $260,000 $300,000 30% 4096 30% $19,000 $14,000 $20,000 $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 238,000 156,000 210,000 604,000 Contribution margin 102,000 104,000 90,000 296,000 Direct fixed expenses 21,000 x 15,000 x 15,000 x 51,000 x Product margin 81,000 x 89,000 X 75,000 x 245,000 x Allocated common costs 1,000 1,000 1,500 3,500 Product income $ 80,000 x $ 88,000 * $ 73,500 x 241,500 x Unallocated common expenses: Selling and administrative 65,000 Service (less direct fixed expenses and allocated common costs) 15,500 x Total 80,500 x Net income 161,000