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%	40%	30%
Direct fixed expenses of services	$19,000	$14,000	$20,000
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.

Clay Consulting Firm Product and Company Income Statements For the Month of July
	Hospitals	Physicians	Nursing Care	Company Totals
Sales
Variable costs
Contribution margin
Direct fixed expenses
Product margin
Allocated common costs
Product income
Unallocated common expenses:
Selling and administrative
Service (less allocated expenses/costs)
Total
Net income