Below are departmental income statements for a guitar manufacturer. The manufacturer is considering dropping its electric guitar department since it has a net loss. The company classifies advertising, rent, and utilities expenses as indirect.

value: 5.00 points Exercise 9-6 Departmental contribution report LO P3 Below are departmental income statements for a guitar manufacturer. The manufacturer is considering dropping 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, 2015 Electric S 112,500 $105,500 66,750 Acoustic Sales Cost of goods sold 55,675 Gross profit Operating expenses 56,825 38,750 6,250 9,000 13,500 1,700 5,950 2,550 Advertising expense Salaries expense Supplies expense Rent expense Utilities expense 8,075 10,150 17,300 2,030 6,105 3,045 Total operating expenses 46,705 38,950 Net income (loss) $ 10,120 (200)