Exercise 09-7 Departmental contribution report LO P3 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. WHOLESALE GUITARS Departmental Income Statements For Year Ended December 31, 2019 Acoustic Electric Sales $103,200 $84,100 Cost of goods sold 44,875 47,550 Gross profit 58,325 36,550 Operating expenses Advertising expense 5,035 4,280 Depreciation expense-Equipment 10,1408 ,590 Salaries expense 20,100 18,000 Supplies expense 1,960 1,740 Rent expense 7,085 5,990 Utilities expense 2,945 2,570 Total operating expenses 47,265 41,170 Set income (loss) $ 11,060 $14,620) 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? Complete this question by entering your answers in the tabs below. Saved Homework 0 Required 1 Required 2 Prepare a departmental contribution report that shows each department's contribution to ove WHOLESALE GUITARS Income Statement Showing Departmental Contribution to Overhead For Year Ended December 31, 2019 Acoustic Dept. Electric Dept. Combined Direct expenses Total direct expenses Departmental contributions to overhead Indirect expenses Total Indirect expenses Required 2 >