DO BOTH REQUIRED TABS!!!!! Below are departmental income statements for a guitar manufacturer. The company classifies advertising, rent, and utilities as indirect expenses. The manufacturer is considering eliminating its Electric Guitar department because it shows a loss.

Departmental Income Statements

For Year Ended December $31$ Acoustic Electric

Sales $ $102,500$ $ $83,200$

Cost of goods sold $44,97547,450$

Gross profit $57,52535,750$

Expenses

Advertising $5,0054,320$

Depreciation$$Equipment $10,1108,560$

Salaries $20,10017,300$

Supplies used $1,9601,710$

Rent $7,0855,990$

Utilities $2,9552,580$

Total expenses $47,21540,460$

Income $($loss$)$ $ $10,310$ $ $(4,710)$

Prepare a departmental contribution to overhead report.

Based on contribution to overhead, should the electric guitar department be eliminated?Below are departmental income statements for a guitar manufacturer. The company classifies advertising, rent,

and utilities as indirect expenses. The manufacturer is considering eliminating its Electric Guitar department

because it shows a loss.

Prepare a departmental contribution to overhead report.

Based on contribution to overhead, should the electric guitar department be eliminated?

Complete this question by entering your answers in the tabs below.

Prepare a departmental contribution to overhead report.