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Assume you are the department 8 mannger for Marley's Manufacturing. Marley's operates under a cost-based transfer structure, Assume you receive the majority of your raw

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Assume you are the department 8 mannger 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 tells only to department (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 $52,000 Cost of goods sold 10,080 27,040 Gross profit 510,920 $24,960 Expenses Utility expenses $1,050 $3,120 Wages expense 5,460 10,400 Costs alocated from corporate 2,100 14,560 Total expenses $8,610 $28.080 Operating income/loss) in dollars 2,100 Operating income/(loss) in percentage 10 %

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