Shoe Shock Innovations manufactures athletic shoe inserts that

Shoe Shock Innovations manufactures athletic shoe inserts that

Shoe Shock Innovations, Problem 10-26 (Part Level Submission) 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 Revenue $498,300 $2,523,000 $3,021,300 Less variable expenses 311,000 2,036,000 2,347,000 Contribution margin 187,300 487,000 674,300 Less traceable fixed expenses 124,200 349,700 473,900 Segment margin $63,100 $137,300 200,400 Common fixed costs 170,600 Net operating income $29,800 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. (a)Prepare a segment margin income statement for Shoe Shock’s two distribution channels.(If the amount is negative then enter with a negative sign preceding the number e.g. -5,125 or parenthesis. e.g. (5,125).) Specialty Footwear Stores Drug Stores Total Shoe Shock  Heel insertsSole insertsTotal revenueCommon fixed expensesSegment marginTotal variable expensesRevenueContribution marginTraceable fixed expensesOperating incomeVariable expenses     Contribution margin    Total variable expenses    Traceable fixed expenses    Total revenue    Segment margin    Common fixed expenses    Operating income    Variable expenses    Revenue    Sole inserts    Heel inserts     $ $ $     Total variable expenses    Contribution margin    Operating income    Sole inserts    Traceable fixed expenses    Segment margin    Heel inserts    Revenue    Common fixed expenses    Total revenue    Variable expenses      Traceable fixed expensesContribution marginHeel insertsVariable expensesOperating incomeSegment marginTotal variable expensesCommon fixed expensesSole insertsRevenueTotal revenue $ $ $  LessAdd:   common fixed expensessole insertstotal revenueheel insertscontribution margintotal variable expensessegment margintraceable fixed expensesvariable expensesoperating incomerevenue     Contribution margin    Revenue    Operating income    Traceable fixed expenses    Total revenue    Segment margin    Common fixed expenses    Sole inserts    Heel inserts    Variable expenses    Total variable expenses         Sole inserts    Common fixed expenses    Variable expenses    Heel inserts    Total variable expenses    Revenue    Traceable fixed expenses    Total revenue    Contribution margin    Operating income    Segment margin      Variable expensesRevenueTraceable fixed expensesSegmented marginContribution marginCommon fixed expensesOperating incomeSole insertsTotal variable expensesHeel insertsTotal revenue  Operating incomeRevenueContribution marginTraceable fixed expensesHeel insertsVariable expensesSegmented marginTotal revenueSole insertsCommon fixed expensesTotal variable expenses  Total variable expensesTraceable fixed expensesHeel insertsVariable expensesCommon fixed expensesTotal revenueSegmented marginContribution marginOperating incomeRevenueSole inserts  Traceable fixed expensesTotal revenueSegmented marginVariable expensesCommon fixed expensesOperating incomeRevenueSole insertsHeel insertsTotal variable expensesContribution margin $ $  RevenueSole insertsContribution marginCommon fixed expensesTotal variable expensesTraceable fixed expensesHeel insertsTotal revenueVariable expensesOperating incomeSegmented margin  Contribution marginSegmented marginCommon fixed expensesVariable expensesSole insertsTotal variable expensesTraceable fixed expensesOperating incomeRevenueHeel insertsTotal revenue $

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