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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

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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 materials from department A, which sells only to department B (they have no outside sales). The income statement for Marley's Manufacturing is shown below: Marley's Manufacturing Income Statement Month Ending August 31, 2018 Dept. A Dept. B Sales $23,000 $52,000 Cost of goods sold 10,810 27,040 Gross profit $12,190 $24.960 Utility expenses 920 3,120 Wages expense 5.750 10,920 Costs allocated from corporate 2,530 15,080 Total expenses $9,200 $29,120 Operating income/loss) in dollars $2,990 -54,160 Operating income/(loss) in percentage 13 % -8% Assume the market price for the items your department purchase is 15% below what you are being charged by department A of Marley's Manufacturing, Determine the operating income for department B, assuming department A "sold" department B 1,000 units during the month and department A reduces the selling price to the market price. Round your percentage answer to one decimal place. New operating income/loss) for department B in dollars 10 New operating income/(loss) for department B in percentage 96

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