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 $84,400 47,450 36,950 WHOLESALE GUITARS Departmental Income Statenents For Year Ended Decenber 31, 2019 Acoustic Sales $103,200 Cost of goods sold 45,025 Gross profit 58,125 Operating expenses Advertising expense Depreciation expense-Equipment 10,100 Solar les expense 20.000 Supplies expense 2.ee Rent expense 7,025 utilities expense 2,965 Total operating expenses 47,115 Het income (loss) $ 10,990 5,045 4,290 8,570 17.30 1,750 6,00 2,600 40,510 $(1,560) 1. Prepare a departmental contribution report that shows each department's contribution to overhead. 2. Based on contribution to overhead, should the electric guitar department be eliminated? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a departmental contribution report that shows each department's contribution to overhead WHOLESALE GUITARS Income Statement Showing Departmental Contribution to Overhead For Year Ended December 31, 2019 Acoustic Dept. Electric Dept Combined 1. Prepare a departmental contribution report that shows each departments contribution to overneao 2. Based on contribution to overhead, should the electric guitar department be eliminated? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a departmental contribution report that shows each department's contribution to overhead. WHOLESALE GUITARS Income Statement Showing Departmental Contribution to Overhead For Year Ended December 31, 2019 Acoustic Dept. Electric Dept Combined Died expenses 0 Total de expense Departmental contributions to overhead Indirect expenses 0 0$ S OS 0 Total indirect expenses $ Required 2 > 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. WHOLESALE GUITARS Departmental Income Statements For Year Ended December 31, 2019 Acoustic Sales $ 103,200 Cost of goods sold 45,075 Gross profit 58,125 Operating expenses Advertising expense Depreciation expense-Equipment 10,100 Salaries expense 20,000 Supplies expense 2,000 Rent expense 7,025 Utilities expense 2,965 Total operating expenses 47.135 Net Income (los) $ 10,990 Electric $84,400 47,450 36,950 5,045 4,290 8,570 17,300 1,750 6,000 2,600 40.510 $(3.560) 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? 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?
