Johnson & Johnson has three segments: Pharmaceuticals, Medical Devices, and Consumer Health. The following information is provided for 2023:

• Pharmaceuticals: Sales $1,200,000, Variable Costs $600,000, Fixed Costs $300,000
• Medical Devices: Sales $900,000, Variable Costs $500,000, Fixed Costs $200,000
• Consumer Health: Sales $700,000, Variable Costs $400,000, Fixed Costs $150,000

Required:

1. Prepare a segmented income statement.
2. Calculate the contribution margin for each segment.
3. Analyze the profitability of each segment and suggest improvements.
4. Discuss the importance of segment reporting in financial analysis and decision-making.