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Below are departmental Income statements for a gultar manufacturer. The company classifies advertising, rent, and utilitles as Indirect expenses. The manufacturer is considering eliminating its

Below are departmental Income statements for a gultar manufacturer. The company classifies advertising, rent, and utilitles as Indirect expenses. The manufacturer is considering eliminating its Electric Gultar department because it shows a loss.
Prepare a departmental contribution to overhead report.
Based on contribution to overhead, should the electric guitar department be ellminated?
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Prepare a departmental contribution to overhead report.
\table[[Departmental Contribution to Overhead],[For Year Ended December 31,Acoustic,Electric,Combined,],[,,,,],[,,,,],[Gross profit,,,,],[Direct expenses,,,,],[,,,,],[,,,,],[Total direct expenses,,,,],[Departmental contribution to overhead,,,,]]
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