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 $496,700 $2,524,000 $3,020,700 Less variable expenses 319,000 2,007,000 2,326,000 Contribution margin 177,700 517.000 694,700 Less traceable fixed expenses 120,400 348.800 469,200 Segment margin $57,300 $168.200 225,500 Common fixed costs 173.200 Net operating income $52,300 Carol Garcia is Shoe Shock's sales manager. Although this statement provides useful information, Carol 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. (a) Your answer is partially correct. Prepare a segment margin income statement for Shoe Shock's two distribution channels. (Enter negative amounts using either a a negative sign preceding the number eg. -45 or parentheses eg. (45.) Specialty Footwear Stores Revenue Sole inserts V 99340 Heel inserts 1893000 Total revenue 1992340 Less V variable expenses Sole inserts 63800 Heel inserts 1505250 Total variable expenses 1569050 Contribution margin 423290 Quer Traceable fixed expenses V 321200 Seemented marein 102090 Common fixed expenses Operating income e Textbook and Media Save for Later Attempts: unlimited Submit Answer (a) Your answer is partially correct. Prepare a segment margin income statement for Shoe Shock's two distribution channels. (Enter negative amounts using either a negative sign preceding the number eg. -45 or parentheses eg. (45).) Drug Stores Total Shoe Shock 397360 $ 496700 631000 2524000 1028360 30320700 255200 319000 501750 2007000 i 756950 2326000 271410 694700 289080 610280 -17670 boy 84420 321210 52300 eTextbook and Media Save for Later Attempts: unlimited Submit