Check my work 1 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 points eBook Blectric $84,900 47.450 37,450 Hint WHOLESALE GUITARS Departmental Income Statements For Year Ended December 31, 2019 Acoustic Sales $101,600 Coat of goods sold 44.375 Gross profit 57,225 Operating expenses Advertising expense 4,985 Depreciation expenne-liquipment 10,110 Salaries expense 19,900 Supplies expense Rent expense 7,015 utilities expense 3,005 Total operating expenses 46,955 Net income (los) $ 10,270 Print References 4,320 8,550 17,900 1,780 5,970 2,640 41,160 ${3,710) 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? 1 WHOLESALE GUITARS Income Statement Showing Departmental Contribution to Overhead For Year Ended December 31, 2019 Acoustic Dept. Electric Dept. Combined 4 points eBook Hint Direct expenses Print References Total direct expenses Departmental contributions to overhead Indirect expenses Total indirect expenses Mc Graw Hill Education Prey 1 of 9 Next >