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 $ 84,900 47,050 37,850 WHOLESALE GUITARS Departmental Income Statements For Year Ended December 31, 2019 Acoustic Sales $ 101,600 Cost of goods sold 44,375 Gross profit 57, 225 Operating expenses Advertising expense 5,065 Depreciation expense-Equipment 10,120 Salaries expense 19,500 Supplies expense 2,010 Rent expense 7,045 Utilities expense 2,945 Total operating expenses 46,685 Net income (loss) $ 10,540 4,270 8,550 17,600 1,720 6,040 2,610 40,790 $(2,940) 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? 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 Direct expenses Total direct expenses 0 0 0 Departmental contributions to overhead $ 0 $ 0 $ 0 Indirect expenses Total indirect expenses 0 $ 0