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.

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, 2017 Acoustic Electric Sales Cost of goods sold Gross profit Operating expenses $102,200 $83,700 47,150 36,550 44,075 58,125 4,995 10,060 Advertising expense Depreciation expense-equipment Salaries expense Supplies expense Rent expense Utilities expense 4,340 8,570 19,800 17,400 1,750 5,990 2,620 40,670 $ 11,250 (4,120) 1,970 7,055 2,995 46,875 Total operating expenses Net income (loss)