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: $ 5,500,000 350,000 320,000 170,000 Total net sales Fixed costs Partly traceable and controllable Partly traceable but noncontrollable Nontraceable costs Total net sales (percent) London store New York store New York-Men's Apparel New York-Women's Apparel Cost of goods sold-variable (percent of sales) London store New York-Men's Apparel New York-Women's Apparel Variable operating costs (percent of sales) London store New York-Men's Apparel New York-Women's Apparel Fixed controllable costs-partly traceable (percent of total) London store New York total Men's Apparel Women's Apparel Could not be traced to Men's or Women's Apparel Could not be traced to London or New York Fixed noncontrollable costs-partly traceable (percent of total) London store New York total Men's Apparel Women's Apparel Could not be traced to Men's or Women's Apparel Could not be traced to London or New York éses As A Sevens e 48% 60 40 60 52% 45 60 36% 22 32 40% 40 45 40 15 20 50% 40 35 15 50 10
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: $ 5,500,000 350,000 320,000 170,000 Total net sales Fixed costs Partly traceable and controllable Partly traceable but noncontrollable Nontraceable costs Total net sales (percent) London store New York store New York-Men's Apparel New York-Women's Apparel Cost of goods sold-variable (percent of sales) London store New York-Men's Apparel New York-Women's Apparel Variable operating costs (percent of sales) London store New York-Men's Apparel New York-Women's Apparel Fixed controllable costs-partly traceable (percent of total) London store New York total Men's Apparel Women's Apparel Could not be traced to Men's or Women's Apparel Could not be traced to London or New York Fixed noncontrollable costs-partly traceable (percent of total) London store New York total Men's Apparel Women's Apparel Could not be traced to Men's or Women's Apparel Could not be traced to London or New York éses As A Sevens e 48% 60 40 60 52% 45 60 36% 22 32 40% 40 45 40 15 20 50% 40 35 15 50 10
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Using This Information, Prepare a Contribution Income Statement For Fashionisto.
Transcribed Image Text: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:
$ 5,500,000
350,000
320,000
170,000
Total net sales
Fixed costs
Partly traceable and controllable
Partly traceable but noncontrollable
Nontraceable costs
Total net sales (percent)
London store
New York store
New York-Men's Apparel
New York-Women's Apparel
Cost of goods sold-variable (percent of sales)
London store
New York-Men's Apparel
New York-Women's Apparel
Variable operating costs (percent of sales)
London store
New York-Men's Apparel
New York-Women's Apparel
Fixed controllable costs-partly traceable (percent of total)
London store
New York total
Men's Apparel
Women's Apparel
Could not be traced to Men's or Women's Apparel
I Could not be traced to London or New York
Fixed noncontrollable costs-partly traceable (percent of total)
London store
New York total
Men's Apparel
Women's Apparel
Could not be traced to Men's or Women's Apparel
Could not be traced to London or New York
40%
60
40
60
52%
45
60
36%
22
32
40%
40
45
40
15
20
50%
40
35
15
50
10
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education