eBook Calculator Print tem Management of Great Springs Bottled Water Company has asked you, the controller, to develop a transfer pricing system for the company. The Transportation Department of the company sells all of its product to the Bottling Department of the company. Thus the Transportation Department's sales become the Bottling Department's cost of goods sold. In order to determine an optimal transfer pricing system, management would like you to demonstrate what an income statement would look like under a cost, market, and negotiated transfer pricing structure. These various transfer prices are listed below. Cost-based $0.62 Market-based $0.74 Negotiated $0.69 Gallons transferred 279,000 Prepare an income statement for each of the transfer prices by filling in the missing numbers in the provided income statement based on each transfer price and calculate the operating income/loss percentage. Round your answers to the nearest whole number. Great Springs Bottled Water Company Income Statement (Cost-based) Month Ending August 31, 20xx Transportation Bottling Sales $ 172,980 $287,000 Cost of goods sold 89,950 Gross profit $14,000 43,080 Expenses: Fuel/utility expense Wages expense Costs allocated from corporate Total expenses Operating income/(loss) in dollars Operating income/(loss) in percentage $3,300 57,300 14,000 $74,600 17,237 $74,312 Next > Check My Work muntain.coinvoker=&takeAssignmentSessionLocator &inprogress eBook Calculator Print Item Great Springs Bottled Water Company Income Statement (Market-based) Month Ending August 31, 20xx Transportation Bottling Sales $287,000 Cost of goods sold 89,950 Gross profit Expenses: Fuel/utility expense $14,000 43,080 Wages expense Costs allocated from corporate Total expenses $3,300 57,300 14,000 17,237 $74,317 $74,600 Operating income/(loss) in dollars Operating income/(loss) in percentage Great Springs Bottled Water Company Income Statement (Negotiated) Month Ending August 31, 20xx Transportation Bottling Sales $287,000 Cost of goods sold 89,950 Gross profit Expenses: Fuel/utility expense $14,000 $3,300 Check My Work All work saved Calculator Print Item eBook Cost of goods sold 89,950 Gross profit Expenses: $14,000 $3,300 43,080 Fuel/utility expense Wages expense Costs allocated from corporate Total expenses 57,300 17,237 14,000 $74,317 $74,600 Operating income/(loss) in dollars Operating income/(loss) in percentage Which of the following statements best describes your results? a. The operating income of the transportation division will be higher than the operating income of the bottling divis b. The operating income of the transportation division will be higher than the operating income of the bottling divis pricing systems only. C. The operating income of the transportation division will be higher than the operating income of the bottling divis pricing systems only. d. The operating income of the transportation division will be higher than the operating income of the bottling divisi pricing systems only. d Incorrect Feedback The sales amount is a function of the transfer rate and the gallons transferred. Check My Works All work saved Email Instru