Below are departmental income statements for a guitar manufacturer. The company classifies advertising, rent, and utilities as indirect expenses. The manufacturer is considering eliminating its Electric Guitar department because it shows a loss.

Departmental Income Statements
For Year Ended December 31	Acoustic	Electric
Sales	$ 102,200	$ 83,600
Cost of goods sold	43,875	46,850
Gross profit	58,325	36,750
Expenses
Advertising	5,015	4,290
DepreciationEquipment	10,080	8,510
Salaries	19,400	17,800
Supplies used	2,000	1,800
Rent	7,025	6,000
Utilities	3,005	2,560
Total expenses	46,525	40,960
Income (loss)	$ 11,800	$ (4,210)

1. Prepare a departmental contribution to overhead report. 2. Based on contribution to overhead, should the electric guitar department be eliminated?