Question: 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.

Chris Kelly is Shoe Shock's sales manager. Although this statement provides useful information, Chris wants to know how well the company's two distribution channels, specialty footwear stores and drugs stores, are performing. Marketing data indicates that 20% of sole inserts and 75% of heel inserts are sold through specialty footwear stores. A recent analysis of corporate fixed costs revealed that 50% of all fixed costs are traceable to specialty footwear stores and 45% of all fixed costs to drug stores.

Prepare a segment margin income statement for Shoe Shock's two distribution channels. (If the amount is negative then enter with a negative sign preceding the number e.g. -5,125 or parenthesis. e.g. (5,125).)

Problem 10-26 (Part Level Submission) Shoe Shock Innovations manufactures athletic shoe inserts that cushion the foot and reduce the impact of exercise on the joi month follows. ecomp Sole Inserts Heel Inserts Division Total Shoe Shock Division Revenue Less variable expenses Contribution margin Less traceable fixed expenses Segment margin Common fixed costs $496,700 $2,524,000 $3,020,700 2,007,000 2,326,000 694,700 469,200 $168,200 225,500 173,200 52,300 319,000 177,700 120,400 $57,300 517,000 348,800 Net operating income Chris Kelly is Shoe Shock's sales manager. Although this statement provides useful information, Chris wants to know how well the company' Marketing data indicates that 20% of sole insert and 75% of heel inserts are sold through spec alty footwear stores. A recent analysis of c stores and 45% of all fixed costs to drug stores. Prepare a segment margin income statement for Shoe Shocks two distribution channels. (If the amount is negative then enter with a n Specialty Footwear Stores Drug Stores