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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 Electric $83, 600 47,550 36,050 WHOLESALE GUITARS Departmental Income Statements For Year Ended December 31, 2019 Acoustic Sales $102,100 Cost of goods sold 44.675 Gronn profit 57,425 Operating expenses Advertising expense 5,065 Depreciation expense-Equipment 10,060 Salaries expense 19,800 Supplies expense 1,950 Rent expense 7,025 Utilities expense 2,975 Total operating expenses 46.875 Net incon (loan) $ 10,550 4,300 8,540 17,400 1,700 6,020 2,640 40.500 $(4,550) 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 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 Total direct expenses Departmental contributions to overhead Indirect expenses Total indirect expenses Advertising expense Depreciation expense-Equipment Salaries expense Supplies expense Rent expense Utilities expense Total operating expenses Net income (loss) 5,065 4,300 10,060 8,540 19,800 17,400 1,950 1,700 7,025 6,020 2,975 2,640 46,875 40,600 $ 10,550 $(4,550) 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 Based on contribution to overhead, should the electric guitar department be eliminated? Based on contribution to overhead, should the electric guitar department be eliminated?

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