Exercise 22-/ Departmental contribution report LO PS 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 $83,800 47,650 36,150 WHOLESALE GUITARS Departmental Income Statements For Year Ended December 31, 2019 Acoustic Sales $101,600 Cost of goods sold 45,375 Gross profit 56, 225 Operating expenses Advertising expense 5,075 Depreciation expense-Equipment 10,120 Salaries expense 20,000 Supplies expense 1,990 Rent expense Utilities expense 2,945 Total operating expenses 47,135 Net income (loss) $ 9,090 7,005 4,320 8,550 17,400 1,790 6,010 2,600 40,670 $(4,520) 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. ch CI 65F Clear AD 640) 8:36 PM 9/28/2021 a 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 Total indirect expenses . search o ED g 65F Clear A la 1) 8:36 PM 9/28/2021 4 6 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 ........................................................................................................................ Based on contribution to overhead, should the electric guitar department be eliminated? Based on contribution to overhead, should the electric guitar department be eliminated? arch o iT ' 65F Clear 8:36 PM 9/28/2021