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, 2017
	Acoustic			Electric
Sales	$	103,100		$	84,600
Cost of goods sold		43,975			46,850
Gross profit		59,125			37,750
Operating expenses
Advertising expense		5,035			4,350
Depreciation expenseequipment		10,090			8,580
Salaries expense		19,900			17,100
Supplies expense		1,980			1,740
Rent expense		7,035			6,040
Utilities expense		3,035			2,570
Total operating expenses		47,075			40,380
Net income (loss)	$	12,050		$	(2,630	)

1. Prepare a departmental contribution report that shows each departments contribution to overhead.

WHOLESALE GUITARS
Income Statement Showing Departmental Contribution to Overhead
For Year Ended December 31, 2017
	Acoustic Dept.	Electric Dept.	Combined
Sales	$103,100
Cost of goods sold
Gross profit
Direct expenses
Depreciation expenseequipment
Salaries expense
Supplies expense
Total direct expenses	0	0	0
Departmental contributions to overhead	$0	$0	$0
Indirect expenses
Advertising expense
Rent expense
Utilities expense
Total indirect expenses			0
Net income			$0