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 Skipped Electric $ 83,600 47,750 35,850 WHOLESALE GUITARS Departmental Income Statements For Year Ended December 31, 2019 Acoustic Sales $102,200 Cost of goods sold 44,275 Gross profit 57,925 Operating expenses Advertising expense 5,005 Depreciation expense-Equipment 10,110 Salaries expense 19,600 Supplies expense 1,960 Rent expense 7,005 Utilities expense 2,995 Total operating expenses 46,675 Net income (loss) $ 11,250 eBook 4,330 8,550 17,400 1,790 5,950 2,600 40,620 $(4,770) Hint 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? Complete this question by entering your answers in the tabs below. 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 5 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. 3 points Skipped Required 1 Required 2 Prepare a departmental contribution report that shows each department's contribution to overhead. WHOLESALE GUITARS eBook Income Statement Showing Departmental Contribution to Overhead For Year Ended December 31, 2019 Hint Acoustic Dept. Electric Dept. Combined Print Direct expenses Total direct expenses 0 0 0 Departmental contributions to overhead 0 $ 0 0 Indirect expenses Total indirect expenses 0 0 5 Acoustic $102,200 44,275 57,925 Electric $83,600 47,750 35,850 3 points Sales Cost of goods sold Gross profit Operating expenses Advertising expense Depreciation expense-Equipment Salaries expense Supplies expense Rent expense Utilities expense Total operating expenses Net income (loss) Skipped 5,005 10,110 19,600 1,960 7,005 2,995 46,675 $ 11,250 4,330 8,550 17,400 1,790 5,950 2,600 40,620 $(4,770) eBook 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? Hint Complete this question by entering your answers in the tabs below. Print 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?