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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,

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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 $492,700 $2,545,000 $3,037,700 Less variable expenses 307,000 2,020,000 2,327,000 Contribution margin 185,700 525,000 710,700 Less traceable fixed expenses 120.800 349,900 470,700 Segment margin $64,900 $175.100 240.000 171,500 Common fixed costs Net operating income $68,500 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 drug 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 Prepresent margin income statement for Shoe Sho's te distribution chart the amount that the 5.12.12 Specialty Footwear Stores Drug Stores . . . + e Textbook and Media

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