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 Electric $89.000 46,850 36,150 WHOLESALE GUITARS Departmental Income Statements For Year Ended December 31, 2019 Acoustic Sales 5103,00 Coat of goods sold 44,175 Gross profit 58,825 Operating expenses Advertising expense 5,255 Depreciation expense-Equipment 19,060 Salaries, expense Supplies expense 1,950 Rent expense 7,025 Utilities expense 2,995 Total operating expenses 47.289 Net income (los) $ 11,548 4.290 8. See 17.200 1,770 2,642 48,440 5(4,290 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 3 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, 2013 Acoustic Dept. Electric Dept Combined Direct expenses Total direct penses Departmental contributions to overhead Indirect expenses Tuta direct expenses Below are departmental income statements for a guitar manufacturer. The manufacturer is considering eliminating its electric guitar department since it has a netloss The company classifies advertising, rent, and utilities expenses as indirect, Electric $83,000 46 850 36,150 WHOLESALE GUITARS Departmental Income Statements For Year Ended December 31, 2019 Acoustic Sales $ 103,000 Cost of goods sold 44, 175 Gross profit 58,825 Operating expenses Advertising expense 5,055 Depreciation expense-Equipment 19,060 Salaries expense 20,200 Supplies expense 1,950 Rent expense 2.025 Utilities expense 2,995 Total operating expenses 47 285 Net Income (loss) $ 11,540 4,290 8,500 17,200 1,770 6,040 2,640 40,440 $(4,290) 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 Based on contribution to overhead, should the electric guitar department be eliminated? Based on contribution to overhead should the electric guitar department be eliminated?