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. Electric $83,800 47,750 36,050 WHOLESALE GUITARS Departmental Income Statements For Year Ended December 31, 2019 Acoustic Sales $103,200 Cost of goods sold 44,575 Gross profit 58,625 Operating expenses Advertising expense 5,055 Depreciation expense-Equipment 10,060 Salaries expense 20,200 Supplies expense 1,970 Rent expense 7,035 Utilities expense 2,985 Total operating expenses 47,305 Net income (loss) $ 11,320 4,300 8,580 17,600 1,720 6,020 2,620 40,840 $(4,790) 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? Required 1 Required 2 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, 2019 Acoustic Dept. Electric Dept. Combined Direct expenses Total direct expenses Departmental contributions to overhead Indirect expenses Total indirect expenses Required 1 Required 2 > Required 1 Required 2 Based on contribution to overhead, should the electric guitar department be eliminated? Based on contribution to overhead, should the electric guitar department be eliminated?