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. WHOLESALE GUITARS Departmental Income Statements For Year Ended December 31, 2019 Acoustic Electric Sales $102,100 $83,200 Cost of goods sold 44,775 46,750 Gross profit 57,325 36,450 Operating expenses Advertising expense 5,075 4,270 Depreciation expense-Equipment 10,070 8,550 Salaries expense 19,800 17,100 Supplies expense 1,990 1,720 Rent expense 7,085 5,960 Utilities expense 3,015 2,590 Total operating expenses 47,035 40,190 Net income (loss) $ 10,290 $(3,740) 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 0 0 0 Total direct expenses Departmental contributions to overhead Indirect expenses $ $ 0 $ $ 0 $ 0 Total indirect expenses 0 0