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. For Year Ended December 31 Sales Cost of goods sold Gross profit Expenses Advertising 47,450 37,350 Departmental Income Statements Acoustic $ 101,800 Electric $ 84,800 44,475 57,325 4,975 4,310 10,140 8,600 19,900 17,800 1,998 1,720 7,095 6,030 2,995 2,620 47,895 $ 10,230 $ (3,730) Depreciation-Equipment Salaries Supplies used Rent Utilities Total expenses Income (loss) 41,080 1. Prepare a departmental contribution to overhead report 2. Based on contribution to overhead, should the electric guitar department be eliminated?