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 $ $102,200$ $ $83,600$

Cost of goods sold $44,37547,150$

Gross profit $57,82536,450$

Expenses

Advertising $5,0154,280$

Depreciation$$Equipment $10,1108,580$

Salaries $20,00017,600$

Supplies used $1,9701,790$

Rent $7,0156,000$

Utilities $3,0452,570$

Total expenses $47,15540,820$

Income $($loss$)$ $ $10,670$ $ $(4,370)$

Prepare a departmental contribution to overhead report.

Based on contribution to overhead, should the electric guitar department be eliminated?