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 |
||
|
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 |
||||
|
|
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 |
-
Rating:
/5
Solution: Income Statements Segmented by Products- Clay Consulting Firm provides three types of client services in three ..