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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.
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 $ 5,500,000 350,000 320,000 170,000 40% 60 40 60 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) 52% 45 60
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