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. Electric $85,000 46,85e 38,150 WHOLESALE GUITARS Departmental Income Statements For Year Ended December 31, 2019 Acoustic Sales $102,900 Cost of goods sold 45,475 Gross profit 57,425 Operating expenses Advertising expense 4.985 Depreciation expense-Equipment 10.120 Salaries expense 20,200 Supplies expense 1,94 Rent expense 7.105 Utilities expense 2.945 Total operating expenses 47.295 Net income (loss) 10.13e 4,350 3.540 17.500 1.740 5,96e 40,820 $(2,670) 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. Required 1 Required 2 Prepare a departmental contribution report that shows each department's contribution to overhead. 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 Direct expenses Total direct expenses Departmental contributions to overhead Indirect expenses Total indirect expenses Required Required 2 >