Problem 18-51 (Algo) Contribution Income Statement;...

Problem 18-51 (Algo) Contribution Income Statement; Spreadsheet Application [LO 18-3] Fashionisto Incorporated is an upscale clothing store in New York City and London. Each store has two main departments, Men's Aparel 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 Fixed costs Nontraceable costs $ 4,100,000 Partly traceable and controllable Partly traceable but noncontrollable 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 280,000 250,000 100,000 48% 68 48 68 52% 45 New York-Women's Apparel 68 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 48 Men's Apparel 45 Women's Apparel 48 Could not be traced to Men's or Women's Apparel 15 Could not be traced to London or New York 28 Fixed noncontrollable costs-partly traceable (percent of total) London store 50% New York total 48 Men's Apparel 35 Women's Apparel 15 Could not be traced to Men's or Women's Apparel Could not be traced to London or New York Required: 1. Using this information, prepare a contribution income statement for Fashionisto. COGS Variable cost Combined Company Not Allocated London Store New York Store Not allocated Men's wear Women's wear Total variable cost 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 S 0 S 0 S 0 58 18

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Problem 18.51 (Algo) Contribution Income Statement; Spreadsheet Application [LO 18-3] 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: able[[Total net sales, $4,180,000],[Fixed costs],[Partly traceable and controllable, $280,080],[Partly traceable but noncontrollable, $250,080],[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, 48%],[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, 58%],[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%]] Required: Using this information, prepare a contribution income statement for Fashionisto. able[[, able[[Combined],[Company]], Not Allocated, London store, able[[New York],[store]], Not allocated, Men's wear, Women's wear],[COGS],[Variable cost],[,,,,,,,1],[,,,,,,,],[Total variable cost, 0, 0, 0, 0, 0, 0, c],[,,,,,,],[0, 0, 0, 0, 0, a],[,,,a,,,],[0, 0, 0, 0, 0, s, s],[,,,,,,],[0, , , , , , ]] Problem 18-51 (Algo) Contribution Income Statement; Spreadsheet Application [LO 18-3] 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 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 $4,180,000 $288,008 $258,080 $100,000 48% 52% 45 68 36% 48% 58% Required: 1. Using this information, prepare a contribution income statement for Fashionisto. Combined Company Not Allocated London Store New York Store Not allocated Men's wear Women's wear COGS Variable cost Total variable cost 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

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