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Fashionisto Incorporated is an upscale clothing store in New York City and London. Each store has two main departments, Men's Apparel and Women's Apparel. Marie
Fashionisto Incorporated is an upscale clothing store in New York City and London. Each store has two main departments, Men's Apparel and Women's Apparel. Marie Phelps, Fashionisto's CFO, wants to use strategic performance measurement to better understand the company's 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, 100, 000 Fixed costs Partly traceable and controllable 280, 000 Partly traceable but noncontrollable 250, 000 Nontraceable costs 100, 000 Total net sales (percent) London store 40% New York store 60 New York-Men's Apparel 40 New York-Women's Apparel 60 Cost of goods sold-variable (percent of sales) London store 52% New York-Men's Apparel 45 New York-Women's Apparel 60 Variable operating costs (percent of sales) London store 36% New York-Men's Apparel 22 New York-Women's Apparel 32 Fixed controllable costs-partly traceable (percent of total) London store 40% New York total 40 Men's Apparel 45 Women's Apparel 40 Could not be traced to Men's or Women's Apparel 15 Could not be traced to London or New York 20 Fixed noncontrollable costs-partly traceable (percent of total) London store 50% New York total 40 Men's Apparel 35 Women's Apparel 15 Could not be traced to Men's or Women's Apparel 50 Could not be traced to London or New York 10
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