Income Statements Segmented by Products- Clay Consulting Firm provides three types of client services in three ..

| August 14, 2017

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

$900,000

Less
variable costs

(601,000)

Contribution
margin

299,000

Less
fixed expenses

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:

Hospitals

Physicians

Nursing Care

Sales

$310,000

$290,000

$300,000

Contribution
margin ratio

30%

40%

30%

Direct
fixed expenses of services

$18,000

$21,000

$13,000

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

$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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