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 $ 101,700 45,175 56,525 Electric $ 83,900 47,150 36,750 Sales Cost of goods sold Gross profit Operating expenses Advertising expense Depreciation expense-equipment Salaries expense Supplies expense Rent expense Utilities expense Total operating expenses Net income (loss) 5,005 10.120 19,900 1,940 7,035 2,995 46,995 $ 9,530 4,340 8,510 17,500 1,790 5,960 2,550 40,650 $ (3,900) 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 Indirect expenses Total Indirect expenses 2. Based on contribution to overhead, should the electric guitar department be eliminated? O No O Yes