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 Sales Cost of goods sold Gross profit Expenses Advertising Depreciation-Equipment Salaries Supplies used Rent Utilities Total expenses Acoustic $ 102,100 44,475 Electric $ 84,200 47,650 57,625 36,550 5,065 4,290 10,050 8,570 20,300 17,300 1,980 1,770 7,075 5,970 2,995 2,550 47,465 40,450 Income (loss) $ 10,160 $ (3,900) 1. Prepare a departmental contribution to overhead report. 2. Based on contribution to overhead, should the electric guitar department be eliminated?