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ACC - Clay Consulting Firm

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Question;Income Statements Segmented by ProductsClay Consulting Firm provides three types of client services in three health-care-related industries. The income statement for July is as follows:Clay Consulting FirmIncome StatementFor Month of JulySales$900,000Less variable costs(601,000)Contribution margin299,000Less fixed expensesService$70,000Selling and administrative65,000(135,000)Net income$164,000The sales, contribution margin ratios, and direct fixed expenses for the three types of services are as follows:HospitalsPhysiciansNursing CareSales$310,000$290,000$300,000Contribution margin ratio30%40%30%Direct fixed expenses of services$18,000$21,000$13,000Allocated common fixed service expenses$1,000$1,000$1,500Prepare income statements segmented by client categories. Include a column for the entire firm in the statement.Clay Consulting FirmProduct and Company Income StatementsFor the Month of JulyHospitalsPhysiciansNursing CareCompany TotalsSales$Answer$Answer$Answer$AnswerVariable costsAnswerAnswerAnswerAnswerContribution marginAnswerAnswerAnswerAnswerDirect fixed expensesAnswerAnswerAnswerAnswerProduct marginAnswerAnswerAnswerAnswerAllocated common costsAnswerAnswerAnswerAnswerProduct income$Answer$Answer$AnswerAnswerUnallocated common expenses:Selling and administrativeAnswerService (less allocated expenses/costs)AnswerTotalAnswerNet income$Answer

 

Paper#39570 | Written in 18-Jul-2015

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