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 Acoustic 31, 2015 Electric 101,700 83,300 44.375 47.250 Sales Cost of goods sold Gross profit 57,325 36.050 Operating expenses 5,055 4.300 Advertising expense 10,140 8,520 Depreciation expense-equipment Salaries expense 19,600 17.200 1,960 1,800 Supplies expense 6,050 7,055 Rent expense Utilities expense 2,945 2,610 46.755 40,480 Total operating expenses Net income (loss) 10,570 (4,430)