Exerclse 22-7 Departmental contrlbutlon 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, 2817 Sales Cost of goods sold Gross profit Operating expenses $182, 308 $84,888 43,875 47.258 37,558 58,425 Advertising expense 4, 298 8,568 28,808 17,800 1,728 6,838 3.815 2.588 5,855 18,118 Salaries expense Supplies expense Rent expense Utilities expense 2,828 7,865 Total operating expenses Net income (loss) 47,265 4,188 11,168 $(2,638)