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HELP Shoe Shock Innovations manufactures athletic shoe inserts that cushion the foot and reduce the impact of exercise on the joints. The company has two
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Shoe Shock Innovations manufactures athletic shoe inserts that cushion the foot and reduce the impact of exercise on the joints. The company has two divisions. Sole Inserts and Heel Inserts. A segmented income statement from last month follows. Sole Inserts Division Heel inserts Division Total Shoe Shock Sales revenue $493,700 $2,540,000 $3,033,700 Less variable expenses 303,000 2,009,000 2,312,000 Contribution margin 190,700 531,000 721,700 Less traceable fixed expenses 123,300 349,700 473,000 Segment margin $67.400 $181,300 248,700 Common fixed costs 171.900 Net operating income $76,800 Sarah Allen is Shoe Shock's sales manager. Although this statement provides useful information, Sarah wants to know how well the company's two distribution channels, specialty footwear stores and drug stores are performing Marketing data indicates that 35% of sole Inserts and 60% of heel inserts are sold through specialty footwear stores. A recent analysis of corporate fixed costs revealed that 40% of all fixed costs are traceable to specialty footwear stores and 55% of all fixed costs to drug stores. Sarah Allen is Shoe Shock's sales manager. Although this statement provides useful information, arah wants to know how well the company's two distribution channels, specialty footwear stores and drug stores, are performing. Marketing data indicates that 35% of sole inserts and 60% of heel inserts are sold through specialty footwear stores. A recent analysis of corporate fixed costs revealed that 40% of all fixed costs are traceable to specialty footwear stores and 55% of all fixed costs to drug stores. (a) Prepare a segment margin income statement for Shoe Shock's two distribution channels. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses eg.(45)) Specialty Footwear Stores
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