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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 $494,900 $2,548,000 $3,042,900 Less variable expenses 319,000 2,011,000 2,330,000 Contribution margin 175,900 537.000 712,900 Less traceable fixed expenses 123,000 348,700 471,700 Segment margin $52,900 $188,300 241,200 Common fixed costs 170,300 Net operating income $70,900 Susan Wilson is Shoe Shock's sales manager. Although this statement provides useful information, Susan 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) 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).) Specialty Footwear Stores Revenue Sole inserts $ $ $ Heel inserts Total revenue Less variable expenses Sole inserts Heel inserts Total variable expenses Contribution marein Traceable fixed expenses Seemented margin $ Common fixed expenses Operatine income e Textbook and Media Save for Later Attempts: 0 of 3 used Submit