Below are departmental income statements for a guitar manufacturer. The company classifies advertising, rent, and utilities as indirect expenses. The manufacturer is considering eliminating its Electric Guitar department because it shows a loss. Departmental Income Statements For Year Ended December 31 Acoustic Electric Sales $ 101,800 $ 84,300 Cost of goods sold 45,575 47,250 Gross profit 56,225 37,050 Expenses Advertising 4,985 4,300 DepreciationEquipment 10,090 8,580 Salaries 19,700 17,300 Supplies used 1,930 1,800 Rent 7,095 5,960 Utilities 3,035 2,630 Total expenses 46,835 40,570 Income (loss) $ 9,390 $ (3,520) 1. Prepare a departmental contribution to overhead report. 2. Based on contribution to overhead, should the electric guitar department be eliminated?