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 Sales Cost of goods sold Gross profit Dept. A Dept. B $22,000 $52,000 10,560 26,520 $11,440 $25,480 Expenses: Utility expenses $1,100 $3,120 Wages expense 5,500 9,880 Costs allocated from corporate 2,420 15,600 Total expenses $9,020 $28,600 Operating income/(loss) in dollars Operating income/(loss) in percentage % % Department B had an operating loss. Feedback Check My Work Operating income is a function of gross profit and total expenses. The percentage is based on operating income in relation to total sales.