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.

$\backslash$table$[[$Departmental Income,Statements,$],[$For Year Ended December $31,$Acoustic,Electric$],[$Sales$,$$$102,200,$$$84,200],[$Cost of goods sold,$45,275,47,450],[$Gross profit,$56,925,36,750],[$Expenses$],[$Advertising$,5,045,4,270],[$Depreciation$-$Equipment,$10,060,8,520],[$Salaries$,19,800,17,700],[$Supplies used,$2,010,1,760],[$Rent$,7,005,6,010],[$Utilities$,3,035,2,570],[$Total expenses,$46,955,40,830],[$Income $($loss$),$$$9,970,$$$(4,080)]]$

Prepare a departmental contribution to overhead report.

Based on contribution to overhead, should the electric guitar department be eliminated?

Complete this question by entering your answers in the tabs below.

Required $1$

Required $2$

Prepare a departmental contribution to overhead report.

$\backslash$table$[[$Departmental Contribution to Overhead$],[$For Year Ended December $31,$Acoustic,Electric,Combined$],[,,,],[,,,],[$Gross profit$],[$Direct expenses$],[,,,],[,,,],[,,,],[$Total direct expenses$],[$Departmental contribution to overhead,,,$]]$

Required $1$

Required $2$