Fashionisto Inc. is an upscale clothing store in New York City and London. Each store has two main departments, Mens Apparel and Womens Apparel. Marie Phelps, Fashionistos CFO, wants to use strategic performance measurement to better understand the companys financial results. She has decided to use the profit center method to measure performance and has gathered the following information about the two stores and the two departments of the New York City store:

Total net sales	$	4,700,000
Fixed costs
Partly traceable and controllable		310,000
Partly traceable but noncontrollable		280,000
Nontraceable costs		130,000
Total net sales (percent)
London store		40	%
New York store		60
New YorkMens Apparel		40
New YorkWomens Apparel		60
Cost of goods soldvariable (percent of sales)
London store		52	%
New YorkMens Apparel		45
New YorkWomens Apparel		60
Variable operating costs (percent of sales)
London store		36	%
New YorkMens Apparel		22
New YorkWomens Apparel		32
Fixed controllable costspartly traceable (percent of total)
London store		40	%
New York total		40
Mens Apparel		45
Womens Apparel		40
Could not be traced to Mens or Womens Apparel		15
Could not be traced to London or New York		20
Fixed noncontrollable costspartly traceable (percent of total)
London store		50	%
New York total		40
Mens Apparel		35
Womens Apparel		15
Could not be traced to Mens or Womens Apparel		50
Could not be traced to London or New York		10

Required:

1. Using this information, prepare a contribution income statement for Fashionisto.