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Departmental contribution report P3 Below are departmental income statements for a guitar manufacturer. The manufacturer is considering dropping its electric guitar department since it has
Departmental contribution report P3
Below are departmental income statements for a guitar manufacturer. The manufacturer is considering dropping its electric guitar department since it has a net loss. The company classifies advertising, rent, and utilities expenses as indirect. (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?
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