Below are departmental income staternents 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 $101,700 $83,200 Cost of goods sold Gross profit 57,125 35,650 Operating expenses Advertising wxpense 3,05 4,270 Depreciation expense-Equipment 10,100 0,520 Salaries expense 20,000 17,500 Supplies expense 1970 1,740 Rent expense 7,055 6,000 utilities expense 2,925 2,580 Total operating expenses 47 155 10,610 Net income (loss) $9,970 $(4,960) 1. Prepare a departmental contribution report that shows each department's contribution to overhead. 2. Based on contribution to overhead, should the electric guitar department be eliminated? Required 1 Required 2 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 1 Required 2 Based on contribution to overhead, should the electric guitar department be eliminated? Based on contribution to overhead, should the electric guitar department be eliminated?