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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 Division $494,700 Heel inserts Division Total Shoe Shock $2,505,000 $2.999,700 Sales revenue Less variable expenses Contribution margin 318,000 2,010,000 2,336,000 176,700 487.000 663,700 Less traceable fixed expenses 124,700 349.700 474,400 Segment margin $52,000 $137,300 189,300 Common fixed costs 173,200 Net operating income $16,100 Jennifer Davis is Shoe Shock's sales manager. Although this statement provides useful information Jennifer 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 Shock's two distribution negative si preceding the numberes.-45 or parentheses es. (450 Specialty Footwear Stores Revenue Sole Inserts Heel inserts Total revenue Les variable expenses Sole Inserts = Heel inserts Total variable expenses Contribution margin 0000 Traceable foed expemes Segmented marin Common fed expenses Drug Stores Total Shoe Shock $ OLI

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