Exercise 24-7 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 $83,700 47,450 36,250 WHOLESALE GUITARS Departmental Income Statements For Year Ended December 31, 2017 Acoustic Sales $101,600 Cost of goods sold 45,475 Gross profit 56,125 Operating expenses Advertising expense 5,035 Depreciation expense-equipment 10,140 Salaries expense 19,400 Supplies expense 1,980 Rent expense 7,045 Utilities expense 2,995 Total operating expenses 46,595 Net income (loss) $ 9,530 4,290 8,550 17,500 1,760 5,990 2,620 40, 710 $(4,460) 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 timu 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