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need further investigation 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
need further investigation
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 fallowing financial information to determine casts that may need further investigation. Marley's Manufacturing Income Statement Month Ending August 31, 2018 Sales Cost of goods sold Gross profit Expenses: utility expenses Wages expense Costs allocated from corporate Total expenses Operating income/(loss) in dollars Operating income/(loss) in percentage Dept. A $22,000 10,340 $11,660 $1,320 5,280 1,980 $8,580 Dept. B $50,000 26,000 $24,000 $2,500 10,000 14,500 $27,000
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