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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 $21,000 $50,000 Cost of goods sold 10,080 26,500 Gross profit $10.920 $23,500 Utility expenses 3,000 Wages expense 5,250 10,000 Costs allocated from corporate 1,890 15,000 Total expenses $7.980 $28,000 Operating income/(loss) in dollars $2,940 -$4,500 Operating Income/(loss) in percentage 14 % Assume the market price for the tems 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 o 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 New operating Income/(108) for department B in percentage 840

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