Below are departmental income statements for a guitar manufacturer. The manufacturer is considering eliminating its Wertising, rent, and utilities expenses asts electric guitar department since it has a net loss. The company classifies advertising, rent, and utilities expenses as indirect. Electric $84, 100 47, 150 36,950 WHOLESALE GUITARS Departmental Income Statements For Year Ended December 31, 2017 Acoustic Sales $102,800 Cost of goods sold 43,775 Gross profit 59,025 Operating expenses Advertising expense 5,035 Depreciation expense-equipment 10, 130 Salaries expense 20,200 Supplies expense 2,020 Rent expense 7,025 Utilities expense 2,985 Total operating expenses 47,395 Net income (loss) $ 11,630 4,280 8,600 17,600 1,720 5,990 2,580 40,770 $(3,820) 1. 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, 2017 coustic Dept. Electric Dept. Combined Direct expenses Total direct expenses Departmental contributions to overhead Indirect expenses Total indirect expenses 2. Based on contribution to overhead, should the electric guitar department be eliminated? O No o Yes