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 $52,000 Cost of goods sold 10,780 27,560 Gross profit $11,220 $24,440 Expenses: Utility expenses $1,320 $2,600 Wages expense 5,720 10,400 Costs allocated from corporate 1,980 14,560 Total expenses $9,020 $27,560 Operating income/(loss) in dollars Operating income/(loss) in percentage % %

pur-new-sol

Related Questions