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, 2017 Acoustic Electric Sales $102,100 384,400 Cost of goods sold 44,175 47.250 Oross profit 57,925 37,150 Operating expenses Advertising expense 5.025 4.300 Depreciation expense-equipment 10.110 8,540 Salaries expense 20,180 17,400 Supplies expense 1,970 1,780 Rent expense 7,065 Utilities expense 3,015 2,580 Total operating expenses 47,265 48,620 Net Income (loss) $ 10,640 $13,470 6,aze 1. Prepare a departmental contribution report that shows each department's contribution to overhead. WHOLESALE GUITARS Income Statement Showing Departmental Contribution to Overhead For Year Ended December 31, 2017 Acoustic Dept. Electric Dept. Combined Direct expenses Total direct expenses Departmental contributions to overhead Total direct expenses Departmental contributions to overhead Indirect expenses Total indirect expenses 2. Based on contribution to overhead, should the electric guitar department be eliminated? No Yes