Question: Please help me prepare a Segment Margin Income Statement for Shoe Shock's two distribution channels. Here are the pictures. There are two pictures of the
Please help me prepare a Segment Margin Income Statement for Shoe Shock's two distribution channels. Here are the pictures. There are two pictures of the income statement split in half so that you can view the whole problem.



Shoe Shock Innovations manufactures athletic shoe inserts that cushion the foot and reduce the impact of exercise on the joint 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 $492,300 $2.516.000 $3,008.300 Less variable expenses 320,000 2,049.000 2,369.000 Contribution margin 172,300 467.000 639.300 Less traceable fixed expenses 123.800 348.700 47.2.500 Segment margin $48.500 $118.300 166.800 Common fixed costs 172.700 Net operating income 5-5.900 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 2596 of all fixed costs to drug stores. Prepare a segment margin income so cement for Shoe Shockis tivo distribution channels Of the amount is negative then enter with a negative sign preceding the number, es. -5,125 or parenthesis, e.s. (5,125).)Specialty Footwear Stores Revenue Sole inserts Heel inserts Total revenue Less variable expenses Sole inserts Heel inserts Total variable expenses Contribution margin Traceable fixed expenses Segmented margin mon Fixed expenses
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