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, 300 47,550 36,750 WHOLESALE GUITARS Departmental Income Statements For Year Ended December 31, 2019 Acoustic Sales $103,300 Cost of goods sold 44,975 Gross profit 58,325 Operating expenses Advertising expense 5,005 Depreciation expense-Equipment 10,120 Salaries expense 19,700 Supplies expense 2,000 Rent expense 7,015 Utilities expense 3,025 Total operating expenses 46,865 Net income (loss) $ 11,460 4,320 8,600 18,000 1,780 5,960 2,620 41, 280 $(4,530) 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? Required 1 Required 2 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 Total indirect expenses D.D. 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?