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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
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 $22,000 $51,000 Cost of goods sold 10,340 26,520 Gross profit $11,660 $24,480 Expenses: Utility expenses $1,100 $2,550 Wages expense 5,720 9,690 Costs allocated from corporate 2,420 15,300 Total expenses $9,240 $27,540 Operating income/(loss) in dollars $fill in the blank $fill in the blank 2 Operating income/loss) in percentage fill in the blank 3 % fill in the blank 4 %
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