9 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. X 01:56:53 Electric $84,888 47,350 37,450 WHOLESALE GUITARS Departmental Income Statements For Year Ended December 31, 2017 Acoustic Sales $191,600 Cost of goods sold 44, 075 Gross profit 57,525 Operating expenses Advertising expense 4,995 Depreciation expense-equipment 10,860 Salaries expense 20, eee Supplies expense 1,930 Rent expense 7,645 Utilities expense 2,975 Total operating expenses 47, ces Net income (loss) $ 10,520 4,280 8,510 17,600 1,730 5,990 2,580 40,690 $(3,240) 1. 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, 2017 Acoustic Dept. Electric Dept. Combined Direct expenses Total direct expenses Departmental contributions to overhead Indirect expenses Total indirect expenses 2. Based on contribution to overhead, should the electric guitar department be eliminated? ONo Yes