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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 Heel inserts Total Shoe Division Division Shock Sales revenue $496,000 $2,505,000 $3.001,000 Less variable expenses 304,000 2,020,000 2,324,000 Contribution margin 192000 485.000 677,000 Less traceable food expenses 124,800 349,800 474,600 Segment margin $67,200 $135,200 202400 Common feed costs 174.900 $27,500 Net operating income Lisa Anderson is Shoe Shock's sales manager. Although this statement provides useful information, Lisa 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 foxed costs are traceable to specialty footwear stores and 55% of all foed costs to drug stores O BE Type here to search hp belli di gin income statement for Shoe Shock'stwo distribution channels. (Enter negative amounts using either a negative sign preceding the number eg. -45 or parentheses 6.8.(45).) Specialty Footwear Stores Revenue Sole inserts 173600 i 5 Heel inserts 1503000 Total revenue 1676600 Less V: variable expenses i 106400 Sole inserts 1212000 Heel inserts 1315400 (Tum Total variable expenses o Te to search hp >

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