Below are departmental income statements for a guitar manufacturer. The manufacturer is considering ellminating its electric guitar department since it has a net loss. The company classifles advertising, rent, and utilities expenses as Indirect. WHOLESALE GUITARS Departmental Income Statements For Year Ended December 31, 2017 Acoustic Electric Sales $102,400 $84,200 Cost of goods sold 44,075 46,950 Gross profit 58,325 37,250 Operating expenses Advertising expense 5,065 4,320 Depreciation expense 10,120 equipment 8,530 Salaries expense 19,500 17,400 Supplies expense 1,940 1, 720 Rent expense 7,005 6,000 Utilities expense 3,015 2,570 Total operating expenses 46,645 40,540 Net income (los) $ 11,680 $ (3,290) 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 Electric Combined Dept. Dept. Direct expenses Total direct expenses Departmental contributions to overhead Indirect expenses Total Indirect expenses 2. Based on contribution to overhead, should the electric guitar department be eliminated? No Yes