1. The following information is from Bluff Run Golf Courses. The company runs three courses and the July income statement for each course is as follows:

A. Find the missing value for outings revenue, wages, and operating income.

BLUFF RUN GOLF COURSES
Income Statement
Month Ending July 31, 2018
	Blue Course		Black Course		Gold Course
Greens fees revenue	$62,500		$89,000		$42,700
Outings revenue	___		6,000		27,000
Total revenue	$74,200		$95,000		$69,700
Expenses:
Landscaping	$7,800		$14,200		$6,400
Wages	43,900		___		32,500
Repairs and maintenance	5,600		2,600		4,400
Fuel	3,100		3,000		1,990
Utilities	1,800		3,000		1,650
Total expenses	$62,200		$78,300		$46,940
Operating income	$12,000		$16,700		$___

B. Rank the courses in order of profitability, using dollars.

Gold Course is highest, Black Course next, Blue Course least.

Blue Course is highest, Black Course next, Gold Course least.

Black Course is highest, Gold Course next, Blue Course least.

Black Course is highest, Blue Course next, Gold Course least.

C. Rank the courses in order of profitability, using percentages.

Gold Course is highest, Black Course next, Blue Course least.

Blue Course is highest, Black Course next, Gold Course least.

Black Course is highest, Gold Course next, Blue Course least.

Black Course is highest, Blue Course next, Gold Course least.

2. Assume you are the department B manager for Marley's Manufacturing. Marley's operates under a cost-based transfer structure. Assume you receive the majority of your raw materials from department A, which sells only to department B (they have no outside sales). After calculating the operating income in dollars and operating income in percentage, analyze the following financial information to determine costs that may need further investigation.

Marley's Manufacturing Income Statement Month Ending August 31, 2018
	Dept. A		Dept. B
Sales	$21,000		$51,000
Cost of goods sold	10,080		26,010
Gross profit	$10,920		$24,990
Expenses:
Utility expenses	$1,050		$2,550
Wages expense	5,250		10,200
Costs allocated from corporate	2,100		15,300
Total expenses	$8,400		$28,050
Operating income/(loss) in dollars	$___		$___
Operating income/(loss) in percentage	___	%	___	%

Department B had an operating loss.

Department A had an operating loss.

Department B has a higher wage percent of sales.

Department A receives a higher percent of allocated costs.