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?