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 $84,700 47,650 37,050 WHOLESALE GUITARS Departmental Income Statements For Year Ended December 31, 2019 Acoustic Sales $102,000 Cost of goods sold 45,375 Gross profit 56,625 Operating expenses Advertising expense 5,065 Depreciation expense-Equipment 10,140 Salaries expense 20,200 Supplies expense 1,970 Rent expense 7,065 Utilities expense 3,025 Total operating expenses 47,465 Net income (loss) $ 9,160 4,330 8,580 17,800 1,790 6,010 2,630 41,140 $(4,090) 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 Departmental contributions to overhead Indirect expenses 0 0 0 0 0 0 $ % % Total indirect expenses Based on contribution to overhead, should the electric guitar department be eliminated? Based on contribution to overhead, should the electric guitar department be eliminated