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 Less variable expenses Contribution margin Less traceable fixed expenses $493,700 316,000 177,700 124,000 $53,700 $2,510,000 2,032,000 478,000 349,500 $128,500 $3,003,700 2,348,000 655,700 473,500 182,200 171,500 Segment margin Common fixed costs Net operating income $10,700 Chris Kelly is Shoe Shock's sales manager. Although this statement provides useful information, Chris wants to know how well the company's two distribution channels, specialty footwear stores and drug stores, are performing Marketing data indicates that 20% of sole Inserts and 75% of heel inserts are sold through specialty footwear stores. A recent analysis of corporate fixed costs revealed that 50% of all fixed costs are traceable to specialty footwear stores and 45% of all fixed costs to drug stores Prepare a segment margin Income statement for Shoe Shock's two distribution channels. Of the amount is negative then enter with a negative sin preceding the number, eg.-5,125 or parenthesis, es. (5,1251) Specialty Footwear Stores Drug Stores e Textbook and Media Based on your analysis, what recommendations would you make to the company? 4 should be dropped