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 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. (a) 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).) Specialty Footwear Stores Drug Stores Total Shoe Shock Specialty Footwear Stores Total variable expenses Sole inserts Variable expenses Segment margin Contribution margin Total revenue Traceable fixed expenses Operating income Common fixed expenses Revenue Heel inserts