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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 (604,000) Contribution margin 296,000 Less fixed expenses 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 $21,000 $15,000 $15,000 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. Use negative signs with all answers relating to expenses and costs. 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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