Do not give solution in image eBookAssume 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 youraw 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 ManufacturingIncome StatementMonth Ending August 31, 2018SalesCost of goods soldGross profitUtility expensesWages expenseCosts allocated from corporateTotal expensesDept. A Dept. B$21,000$50,00010,08026,000$10,920$24,0001,0503,5005,040 10,5001,89014,500$7,980 $28,500$2,940-$4,500Operating income/(loss) in dollarsOperating income/(loss) in percentage14%-9:%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 8 1,000 units during the month and department A reduces the selling priceto the market price. Round your percentage answer to one decimal place.-2,850 XNew operating income/(loss) for department B in dollarsNew operating income/(loss) for department B in percentage5.7 X %

Operation Income: Operating income is an accounting metric that indicates the amount of profit…

Assume you are the department 8 manager for Marley's Manufacturing. Marley's operates under a cost-based transfer structure. Assume you receive the majority of you 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 $50,000 26,000 Sales Cost of goods sold Gross profit Utility expenses expense Costs allocated from corporate Total expenses Operating income/(loss) in dollars Operating income/(loss) in percentage 14% -9% 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 8 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 -2,850 X New operating income/(loss) for department 8 in percentage