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.

WHOLESALE GUITARS Departmental Income Statements For Year Ended December 31, 2019
	Acoustic			Electric
Sales	$	102,900		$	83,100
Cost of goods sold		44,075			47,750
Gross profit		58,825			35,350
Operating expenses
Advertising expense		4,975			4,290
Depreciation expenseEquipment		10,070			8,590
Salaries expense		20,100			17,500
Supplies expense		2,020			1,800
Rent expense		7,105			6,050
Utilities expense		3,015			2,570
Total operating expenses		47,285			40,800
Net income (loss)	$	11,540		$	(5,450	)

1. Prepare a departmental contribution report that shows each departments contribution to overhead. 2. Based on contribution to overhead, should the electric guitar department be eliminated?

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 Required 2> 1.Prepare a departmental contribution report that shows each department's contribution to overhe 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 quitar department be eliminated? Based on contribution to overhead, should the electric guitar department be eliminated?