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 $103,300 $83,500 Cost of goods sold 45,475 46,750 Gross profit 57,825 36,750 Operating expenses Advertising expense 5,005 4,290 Depreciation expense-Equipment 10,090 8,550 Salaries expense 20,300 17,600 ces Supplies expense 1,970 1,740 Rent expense 7,015 6,010 Total operating expenses Utilities expense Net income (loss) 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? 3,005 2,560 47,385 40,750 $ 10,440 $(4,000)