Department contribution to overhead Below are departmental income statements for Wagner Inc., a piano manufacturer. Wagner is considering dropping its upright department as it has a net loss. The company classified advertising, rent, and utilities expenses as indirect. WAGNER INC. Departmental Income Statements For Year Ended December 31, 2014 Grand Upright Combined Sales $111,500 $105,500 $217,000 Cost of goods sold 55,675 66,750 122,425 Gross profit 55,825 38,750 94,57 Operating expenses Advertising expense 8,075 6,250 14,325 Depreciation expense 10,150 9,000 19,150 Salaries expense 17,300 13,500 30,800 Supplies expense 2,030 1,700 3,730 Rent expense 6,105 5,950 12,055 Utilities expense 3,045 2,550 5,595 Total operating expenses 46,705 38,950 85,655 Net income (loss) $9,120 ($200) $8,920 1. Prepare a departmental contribution report that shows each department's contribution to overhead. 2. Based on the contribution to overhead, should the upright piano department be eliminated