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How would the drug stores and total shoe stock revenues be determined? Shoe Shock Innovations manufactures athletic shoe inserts that cushion the foot and reduce

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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. Sales revenue Less variable expenses Contribution margin Less traceable fixed expenses Segment margin Common fixed costs Net operating income Sole Inserts Heel Inserts Division Division $492,300 $2,516,000 320,000 2,049,000 172,300 467,000 123,800 348,700 $48,500 $118,300 Total Shoe Shock $3,008,300 2,369,000 639,300 472,500 166,800 172.700 $-5,900 Michelle Walker is Shoe Shock's sales manager. Although this statement provides useful information, Michelle 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, Prepare a segment margin income statement for Shoe Shock's two distribution channels. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses es: (450 Specialty Footwear Stores Revenge Solensarts 122305 5 Heel inserts 15096001 Total revenue 1661905 Cess variable expenses Solensarts Heel inserts Total variable expenses Contribution Tractable fed expenses Commandexpenses Operating Question 3 of 3

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