anagement-Level Control [LO 18-3] 18-51 Contribution Income Statement; Spreadsheet Application Fashionisto Inc. 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: $3,500,000% 250,000 220.000 70,000 40% 60 40 60 52% 45 60 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 36% 22 32 40% 40 45 40 15 20 50% 40 35 15 50 10 Required 1. Using this information, prepare a contribution income statement for Fashionisto, showing contribution margin, controllable margin, and contribution by profit center (CPC) for both the London and New York stores and for both departments of the New York store. Using Excel is highly recommended for this problem; Excel can improve accuracy and allows for easy assessment of changed assumptions. 2. What are the global issues that are an important part of the profit center evaluation for Fashionisto Inc