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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 $491,300 $2,549,000 $3,040,300 Less variable expenses 311,000 2,011.000 2.322.000 Contribution margin 180,300 538,000 718,300 Less traceable fixed expenses 123,500 348,100 471,600 Segment margin $56,800 $189.900 246.700 Common fixed costs 173.800 Net operating income $72,900 Betty Harris is Shoe Shock's sales manager. Although this statement provides useful information, Betty 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 fixed costs are traceable to specialty footwear stores and 55% of all fixed costs to drug stores Prepare a segment margin income statement for Shoe Shocks two distribution channels (Enter negative amounts using either a negative sin preceding the numbers, 45 or parentheses es (450) Specialty Footwear Stores Revenue 121955 152940 Sole Inserts Helimets Total revenue Less variable ex Solo inserts Hecliners Total variable Contribution margin Tradespeses $ Sented more Command Prepare a segment margin income statement for Shoe Shock's two distribution channels. (Enter negative armounts using either a negative sign preceding the number eg.-45 or parentheses eg. (451) Drug Stores Total Shoe Shock 1529400 3040300 2322000 718300 72900

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