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, 2019 Acoustic Electric Sales $102,500 $ 83,900 Cost of goods sold 44,975 47,150 Gross profit 57,525 36,750 Operating expenses Advertising expense 4,985 4,280 Depreciation expense-Equipment 10,060 8,580 Salaries expense 19,400 17,600 Supplies expense 1,930 1,800 Rent expense 7,025 6,010 Utilities expense 2,945 2,570 Total operating expenses 46,345 40,840 Net income (loss) $ 11,180 $(4,090) 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 over 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 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?