Below are departmental income ts for a guitar manufacturer The manufacturer is considering statement dropping its electric guitar department since it has a net loss. The company classifies advertising, rent and utilities expenses as indirect. WHOLESALE GUITARS Departmental inoome Statements For Year Ended December 31, 2015 Acoustic Electric 112,500 $105,500 Sales 55,675 66,750 Cost of goods sold 56,825 38,750 Gross profit Operating expenses 8,075 6,250 Advertising expense 10,150 9,000 Depreciation expense- equipment 17,300 13,500 Salaries expense 2,030 1,700 Supplies expense 5,950 6,105 Rent expense 2.550 3,045 Utilities expense 46,705 38,950 Total operating expenses 10,120 (200) Net income (loss)