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	$ 102,300	$ 83,400
Cost of goods sold	45,675	46,950
Gross profit	56,625	36,450
Expenses
Advertising	5,045	4,340
DepreciationEquipment	10,130	8,590
Salaries	19,400	17,400
Supplies used	1,930	1,770
Rent	7,085	5,970
Utilities	2,955	2,620
Total expenses	46,545	40,690
Income (loss)	$ 10,080	$ (4,240)

1. Prepare a departmental contribution to overhead report. 2. Based on contribution to overhead, should the electric guitar department be eliminated?