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Problem 22-48 Departmental contribution to income P300 Sadar Company operates a store with two departments: guitar and piano, Information about those departments follows. Guitar Department Piano Department Sales $370.500 $279,500 Cost of goods sold 320.000 175,000 Direct expenses Salaries 35,000 25,000 Maintenance 12.000 10,000 Utilities 5,000 4,500 Insurance 4,200 3.700 The company also incurred the following indirect costs. The company also incurred the following indirect costs. Advertising $15,000 Salaries 27.000 Office expenses 3,200 Indirect costs are allocated as follows: advertising on the basis of sales: salaries on the basis of number of employees and office expenses on the basis of square footage. Additional information about the departments follows. Department Square Footage Number of Employees Guitar 5,000 3 Piano 3.000 2 Required 1. For each department, determine the departmental contribution to overhead and the departmental net income. Check (1) Plano dept.net Income $42.850 2. Should the guitar department be eliminated? Explain