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 $ $101,700$ $ $83,800$

Cost of goods sold $45,07546,850$

Gross profit $56,62536,950$

Expenses

Advertising $5,0154,280$

Depreciation$$Equipment $10,0908,590$

Salaries $20,20017,200$

Supplies used $2,0301,760$

Rent $7,0356,050$

Utilities $2,9752,560$

Total expenses $47,34540,440$

Income $($loss$)$ $ $9,280$ $ $(3,490)$

Prepare a departmental contribution to overhead report.

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