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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

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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 $103, 100 $85,000 Cost of goods sold 45,075 46,750 Gross profit 58,025 38,250 Operating expenses Advertising expense 5,045 4,290 Depreciation expense-Equipment 10,130 8,540 Salaries expense 20,100 17,700 Supplies expense 1,960 1,750 Rent expense 7,015 6,010 Utilities expense 3,025 2,640 Total operating expenses 47,275 40,930 Net income (loss) $ 10,750 $(2,680) 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? Complete this question by entering your answers in the tabs below. 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 0 0 0 Total direct expenses Departmental contributions to overhead Indirect expenses $ 0 $ 0 $ 0 Total indirect expenses 0 $ 0

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