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. Heel Inserts Division Total Shoe Shock Sole Inserts Division $493,200 Sales revenue $2,524,000 $3,017200 2,328,000 312.000 2,016,000 Less variable expenses Contribution margin 181.200 508,000 689.200 Less traceable fixed expenses 120,500 349,800 470,300 Segment margin $60,700 $158.200 218,900 Common fixed costs 172.600 Net operating income $46,300 Dorothy Taylor is Shoe Shock's sales manager. Although this statement provides useful information, Dorothy wants to know how well the company's two distribution channels, specialty footwear stores and drugstores, 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 foxed costs to drug stores, Specialty Footwear Stores Revenue $ Solinserts $ Heel inserts Total revenue $ v Variable expenses Less & Soleinserts DI UL Heel inserts Total Variable expenses Sole Inserts Heel inserts Total variable expenses Contribution margin Traceable food expenses Segmented margin Common foxed expenses Operating income Total Shoe Shock Drug Stores $ $