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	$491,400		$2,543,000		$3,034,400
Less variable expenses	300,000		2,018,000		2,318,000
Contribution margin	191,400		525,000		716,400
Less traceable fixed expenses	122,600		348,100		470,700
Segment margin	$68,800		$176,900		245,700
Common fixed costs					171,400
Net operating income					$74,300

Sharon Lee is Shoe Shocks sales manager. Although this statement provides useful information, Sharon wants to know how well the companys 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 fixed costs are traceable to specialty footwear stores and 55% of all fixed costs to drug stores.

(a)

Partially correct answer iconYour answer is partially correct.

Prepare a segment margin income statement for Shoe Shocks two distribution channels. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

	Specialty Footwear Stores		Drug Stores		Total Shoe Shock
select an opening name for section one Sole insertsVariable expensesHeel insertsTotal variable expensesOperating incomeTraceable fixed expensesContribution marginCommon fixed expensesTotal revenueRevenueSegment margin
select an income statement item Common fixed expensesSegment marginHeel insertsTotal variable expensesOperating incomeTraceable fixed expensesSole insertsVariable expensesContribution marginRevenueTotal revenue	$enter a dollar amount		$enter a dollar amount		$enter a dollar amount
select an income statement item Common fixed expensesHeel insertsTotal variable expensesContribution marginVariable expensesTotal revenueSegment marginRevenueSole insertsTraceable fixed expensesOperating income	enter a dollar amount		enter a dollar amount		enter a dollar amount
select a closing name for section one Total revenueOperating incomeContribution marginSegment marginVariable expensesSole insertsTotal variable expensesRevenueCommon fixed expensesTraceable fixed expensesHeel inserts		$enter a total amount for section one		$enter a total amount for section one		$enter a total amount for section one
select between addition and deduction AddLess: select an opening name for section two traceable fixed expensestotal variable expensesheel insertstotal revenuecontribution marginoperating incomerevenuesegment marginsole insertsvariable expensescommon fixed expenses
select an income statement item Sole insertsVariable expensesOperating incomeTraceable fixed expensesContribution marginRevenueSegment marginTotal variable expensesTotal revenueHeel insertsCommon fixed expenses	enter a dollar amount		enter a dollar amount		enter a dollar amount
select an income statement item Total variable expensesSole insertsVariable expensesTotal revenueHeel insertsContribution marginTraceable fixed expensesOperating incomeSegment marginCommon fixed expensesRevenue	enter a dollar amount		enter a dollar amount		enter a dollar amount
select a closing name for section two Sole insertsRevenueHeel insertsTraceable fixed expensesOperating incomeContribution marginCommon fixed expensesVariable expensesTotal revenueTotal variable expensesSegmented margin		enter a total amount for section two		enter a total amount for section two		enter a total amount for section two
select a summarizing line for the first part Operating incomeSole insertsTotal variable expensesHeel insertsContribution marginVariable expensesTraceable fixed expensesRevenueCommon fixed expensesSegmented marginTotal revenue		enter a total amount for the first part		enter a total amount for the first part		enter a total amount for the first part
select an income statement item Segmented marginRevenueSole insertsHeel insertsOperating incomeTraceable fixed expensesCommon fixed expensesTotal variable expensesTotal revenueContribution marginVariable expenses		enter a dollar amount		enter a dollar amount		enter a dollar amount
select a summarizing line for the second part RevenueSegmented marginCommon fixed expensesSole insertsOperating incomeTotal variable expensesHeel insertsTraceable fixed expensesVariable expensesTotal revenueContribution margin		$enter a total amount for the second part		$enter a total amount for the second part		enter a total amount for the second part
select an income statement item Segmented marginSole insertsTotal revenueOperating incomeTraceable fixed expensesTotal variable expensesVariable expensesContribution marginHeel insertsRevenueCommon fixed expenses						enter a dollar amount
select a closing name for this statement RevenueSole insertsVariable expensesTotal variable expensesCommon fixed expensesHeel insertsTotal revenueContribution marginOperating incomeSegmented marginTraceable fixed expenses						$enter a total amount for this statement

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