CengageNOWv2 | Online teachirn X ow.com/ilrn/takeAssignment/takeAssignmentMan.uo?invoker=&takeAssignmentSessionLocator=&inprogress=false eBook 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 000a 27,560 Sales Cost of goods sold 11,040 096'$ $24,440 3,640 Gross profit Utility expenses 1,380 Wages expense 5,980 10,920 Costs allocated from corporate 2,530 15,080 Total expenses 068$ $29,640 $2,070 -$5,200 Operating income/(loss) in dollars Operating income/(loss) in percentage Assume the market price for the items your department purchase is 15% below what you are being charged by department A of Marley's Manufacturing. Determine the operating income for department B, assuming department A "sold" department B 1,000 units during the month and department A reduces the selling price to the market price. Round your percentage answer to one decimal place. New operating income/(loss) for department B in dollars 24 New operating income/(loss) for department B in percentage
CengageNOWv2 | Online teachirn X ow.com/ilrn/takeAssignment/takeAssignmentMan.uo?invoker=&takeAssignmentSessionLocator=&inprogress=false eBook Assume you are the department B manager for Marley's Manufacturing. Marley's operates under a cost-based transfer structure. Assume you receive the majority of your raw materials from department A, which sells only to department B (they have no outside sales). The income statement for Marley's Manufacturing is shown below: Marley's Manufacturing Income Statement Month Ending August 31, 2018 Dept. A Dept. B 000a 27,560 Sales Cost of goods sold 11,040 096'$ $24,440 3,640 Gross profit Utility expenses 1,380 Wages expense 5,980 10,920 Costs allocated from corporate 2,530 15,080 Total expenses 068$ $29,640 $2,070 -$5,200 Operating income/(loss) in dollars Operating income/(loss) in percentage Assume the market price for the items your department purchase is 15% below what you are being charged by department A of Marley's Manufacturing. Determine the operating income for department B, assuming department A "sold" department B 1,000 units during the month and department A reduces the selling price to the market price. Round your percentage answer to one decimal place. New operating income/(loss) for department B in dollars 24 New operating income/(loss) for department B in percentage
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Assume you are the department B manager for Marley's Manufacturing. Marley's operates under a cost-based transfer structure. Assume you receive the majority of your raw
materials from department A, which sells only to department B (they have no outside sales).
The income statement for Marley's Manufacturing is shown below:
Marley's Manufacturing
Income Statement
Month Ending August 31, 2018
Dept. A
Dept. B
000a
27,560
Sales
Cost of goods sold
11,040
096'$
$24,440
3,640
Gross profit
Utility expenses
1,380
Wages expense
5,980 10,920
Costs allocated from corporate
2,530
15,080
Total expenses
068$
$29,640
$2,070 -$5,200
Operating income/(loss) in dollars
Operating income/(loss) in percentage
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
24
New operating income/(loss) for department B in percentage
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