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 $83, 100 47.50 36,050 WHOLESALE GUITARS Departmental Income Statements For Year Ended December 31, 2017 Acoustic Sales $ 103,300 Cost of goods sold 44,575 Gross profit 58,725 Operating expenses Advertising expense 5,265 Depreciation expense-equipment 10, 110 Salaries expense 19,600 Supplies expense 1,960 Rent expense 7,025 Utilities expense 3.045 Total operating expenses 46,805 Net income (loss) $ 11.920 4,340 8, 580 17,700 1,719 6,020 2.599 40,940 $(4,890) a 900 1. 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, 2017 Acoustic Dept. Electric Dept. Combined Direct expenses Total direct expenses Departmental contributions to overhead Indirect expenses Total indirect expenses