Exercise 22-7 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 $84,000 46,850 37,150 WHOLESALE GUITARS Departmental Income Statements For Year Ended December 31, 2019 Acoustic Sales $101,600 Cost of goods sold 44,875 Gross profit 56,725 Operating expenses Advertising expense 4,995 Depreciation expense-Equipment 10,140 Salaries expense 19,500 Supplies expense 2,000 Rent expense 7.055 utilities expense 2,955 Total operating expenses 46,645 Net Income (loss) 10,080 4,290 8,520 17.400 1,780 6,020 2.550 40,560 $(3,410) 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? 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 0 0 0 Total direct expenses Departmental contributions to overhead Indirect expenses $ 0 $ 0 $ 0 Total Indirect expenses 0 $ 0 Rocuired Required 2 > 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?