4. Exercise 22-7 Departmental contribution report LO P3 10 points Book Below are departmental income statements for a guitar manufacturer. The manufacturer is considering eliminating its electric guitar department since it has a net loss. The company classifies advertising, rent, and utilities expenses as indirect WHOLESALE GUITARS Departmental Income Statements For Year Ended December 31, 2019 Acoustic Electric Sales $101,700 $84,000 Cost of goods sold 45,675 47.250 Gross profit 56,025 36,75e Operating expenses Advertising expense 4,995 4,330 Depreciation expense-Equipment 10,120 8,520 Salaries expense 20,300 17,200 Supplies expense 1,940 1,790 Rent expense 7.045 6,040 Utilities expense 2.975 2.560 Total operating expenses 47375 40,440 Net income (loss) $ 8,650 ${3,690) Print Defence 1. Prepare a departmental contribution report that shows each department's contribution to overhead. 2. Based on contribution to overhead, should the electric guitar department be eliminated? Complete this question by entering your answers in the tabs below. Required: Required 2 Prepare a departmental contribution report that shows each department's contribution to overhead, WHOLESALE GUITARS Required 1 Required 2 Prepare a departmental contribution report that shows each department's contribution to overhead. WHOLESALE GUITARS Income Statement Showing Departmental Contribution to Overhead For Year Ended December 31, 2019 Acoustic Dept. Electric Dept. Combined Direct expenses 5 Total direct expenses Departmental contributions to overhead Indirect expenses Total indirect expenses Required Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Based on contribution to overhead, should the electric guitar department be eliminated? Based on contribution to overhead, should the electric guitar department be eliminated?