5 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. 3 points Electric $84,000 47, 150 36,850 eBook WHOLESALE GUITARS Departmental Income Statements For Year Ended December 31, 2019 Acoustic Sales $101,900 Cost of goods sold 45,375 Gross profit 56,525 Operating expenses Advertising expense 5,065 Depreciation expense-Equipment 10,070 Salaries expense 19,700 Supplies expense 1,950 Rent expense 7,035 Utilities expense 2,945 Total operating expenses 46,765 Net income (loss) $ 9,760 101 Hint 4,310 8,550 17,200 1,720 6,020 2,620 40,420 $(3,570) Print 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? 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 Total direct expenses Departmental contributions to overhead Indirect expenses Total indirect expenses Required 1 Required 2 > 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