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. WHOLESALE GUITARS Departmental Income Statements For Year Ended December 31, 2019 Acoustic Electric Sales $181,600 $83,900 Cost of goods sold 44,075 46,950 Gross profit 57,525 36,950 Operating expenses Advertising expense 5,065 4,260 Depreciation expense-Equipment 18,119 8,550 Salaries expense 19,400 17,100 Supplies expense 1,960 1,740 Rent expense 7,035 5,970 Utilities expense 3,025 2,580 Total operating expenses 46,595 40,200 Net Income (Loss) $ 10,930 $(3,250) 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? WHOLESALE GUITARS Income Statement Showing Departmental Contribution to Overhead For Year Ended December 31, 2019 Acoustic Dept. Electric Dept. Combined Direct expenses 0 0 0 Total direct expenses Departmental contributions to overhead Indirect expenses 0 $ 0 $ 0 Total indirect expenses 0 $ 0 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Based on contribution to overhead, should the electric guitar department be eliminated? Based on contribution to overhead should the electric guitar department be eliminated?