Below are departmental income statements for a guitar manufacturer. The manufacturer is considering dropping 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, 2015 Electric 102,500 S 84,600 47,750 Acoustic Sales Cost of goods sold 44,675 Gross profit Operating expenses 57,825 36,850 Advertising expense Depreciation expense-equipment Salaries expense Supplies expense Rent expense Utilities expense 5,035 10,050 20,000 1,960 7,075 3,035 4,270 8,520 17,800 1,750 5,950 2,620 Total operating expenses 47,155 40,910 Net income (loss) S 10,670 (4,060)