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.

Departmental Income Statements

For Year Ended December $31$ Acoustic Electric

Sales $ $103,200$ $ $84,800$

Cost of goods sold $44,67547,550$

Gross profit $58,52537,250$

Expenses

Advertising $5,0154,330$

Depreciation$$Equipment $10,1308,600$

Salaries $19,70017,500$

Supplies used $1,9601,710$

Rent $7,0155,970$

Utilities $3,0452,640$

Total expenses $46,86540,750$

Income $($loss$)$ $ $11,660$ $ $(3,500)$

$1.$Prepare a departmental contribution to overhead report.

$2.$Based on contribution to overhead, should the electric guitar department be eliminated? please answer in the same format