Fashionisto Incorporated 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	$ 5,500,000
Fixed costs
Partly traceable and controllable	350,000
Partly traceable but noncontrollable	320,000
Nontraceable costs	170,000
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.