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 $83,300 47,750 35,550 WHOLESALE GUITARS Departmental Income Statements For Year Ended December 31, 2019 Acoustic Sales $ 101,900 Cost of goods sold 44,575 Gross profit 57,325 Operating expenses Advertising expense 4,985 Depreciation expense-Equipment 10,060 Salaries expense 19,400 Supplies expense 2,010 Rent expense 7,045 Utilities expense 2,975 Total operating expenses 46,475 Net income (loss) $ 10,850 4,320 8,580 17,900 1,700 5,990 2,620 41,110 $(5,560) 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 Electric Dept. Combined Dept. Direct expenses Total direct expenses Departmental contributions to overhead | $ Indirect expenses 0 $ 0 $ Total indirect expenses 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