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, 2017
	Acoustic			Electric
Sales	$	102,700		$	83,400
Cost of goods sold		44,475			47,450
Gross profit		58,225			35,950
Operating expenses
Advertising expense		5,075			4,330
Depreciation expenseequipment		10,140			8,530
Salaries expense		20,100			17,400
Supplies expense		2,010			1,800
Rent expense		7,015			6,040
Utilities expense		3,015			2,610
Total operating expenses		47,355			40,710
Net income (loss)	$	10,870		$	(4,760	)

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	0	0	0
Departmental contributions to overhead	$0	$0	$0
Indirect expenses
Total indirect expenses			0
			$0