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 $ 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.