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 584,500 67,550 36,950 WHOLESALE GUITALS Departmental income Statements Por Year Ended December 31, 2017 Acoustic Sales $102,500 Cost of goods sold 45.575 Cross profit 56,925 Operating expenses Advertising expense 5,045 Depreciation expense-equipment 10,100 Salaries expense 19,900 Supplies expense 1,930 Rent expense 7,025 Utilities expense 3,025 Total operating expenses 47,025 Net income (loss) $ 9,900 4,350 8.520 17.900 1.710 6,040 2,580 41,100 $4,150) 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