prepare a segment margin income statement for shoe shocks two distribution channels

Question 1 of 2 0.84/4 E 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 $490,900 $2,543,000 $3,033,900 Less variable expenses 307,000 2,017,000 2,324,000 Contribution margin 183,900 526,000 709,900 Less traceable fixed expenses 124,100 348,700 472,800 Segment margin $59,800 $177,300 237,100 Common fixed costs 172,400 Net operating income $64,700 Karen White is Shoe Shock's sales manager. Although this statement provides useful information, Karen 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 foxed costs revealed that 40% of all fixed costs are traceable to specialty footwear stores and 55% of all fixed costs to drug stores. Revenue Sole inserts Heel inserts Total revenue Less : variable expenses Sole inserts Heel inserts Total variable expenses 0 Contribution margin Traceable fixed expenses Segmented margin Common fixed expenses : stv 2 O 392720 635750 245600 Question 1 of 2 Drug Stores 392720 635750 245600 1028470 0000 Total Shoe Shock 490900 2453000 207000 2017000 0.84/4 3033900 i FOOD 2324000