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

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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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

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

	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

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

$1,500

Clay Consulting Firm Product and Company Income Statements For the Month of July
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

Clay Consulting Firm
Product and Company Income Statements
For the Month of July

Hospitals

Physicians

Nursing Care

Company Totals

Sales

$Answer

Variable costs

Answer

Contribution margin

Answer

Direct fixed expenses

Answer

Product margin

Answer

Allocated common costs

Answer

Product income

$Answer

Answer

Unallocated common expenses:

Selling and administrative

Answer

Service (less allocated expenses/costs)

Answer

Total

Answer

Net income

$Answer

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

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

Needs help with similar assignment?

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