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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 $84,100 47,550 36,550 WHOLESALE GUITARS Departmental Income Statements For Year Ended December 31, 2017 Acoustic Sales $101,700 Cost of goods sold 44,675 Gross profit 57,025 Operating expenses Advertising expense 5,015 Depreciation expense-equipment 10,050 Salaries expense 19,700 Supplies expense 1,990 Rent expense 7,045 Utilities expense 2,965 Total operating expenses 46,765 Net income (loss) $ 10,260 4,320 8,520 17,100 1,780 5,950 2,580 40,250 $(3,700) 1. 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, 2017 Acoustic Dept. Electric Dept. Combined Direct expenses 0 0 Total direct expenses Departmental contributions to overhead Indirect expenses OS 0 $ Total indirect expenses

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