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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 classies advertising, rent, and utilities expenses as indirect. WHOLESALE GUITARS Departmental Income Statements For Year Ended December 31, 2011 Acoustic Electric Sales $102,700 $83,200 Cost of goods sold 45.37'5 45.550 Gross profit 57,325 36,350 Operating expenses Advertising expense 5 , 025 4 , 330 Depreciation expenseequipment 10, 110 H.530 Salaries expense 20,200 17,300 Supplies expense 1,970 1,730 Rent expense 7,095 6,000 Utilities expense 2.935 2.540 Total operating expenses 47: 335 40.530 Net income (loss) $ 9.940 \"4.190) 1. Prepare a departmental contribution report that shows each department's contribution to overhead. 1. Prepare a departmental contribution report that shows each department's contribution to overhead. Direct expenses Total direct expenses Departmental contributions to overhead Indirect expenses 2. Based on contribution to overhead, should the electric guitar department be eliminated? \"NO , \\ Var: 1. Prepare a departmental contribution report that shows each department's contribution to overhead. Advertising expense Cost of goods sold Depreciation expenseequipment Rent expense Salaries expense 0 = Oll'e expenses Departmental oontrlbutlons to overhead Indirect expenses 1. Prepare a departmental contribution report that shows each department's contribution to overhead. Rent expense Salaries expense Supplies expense Utilities expense Departmental oontributions to _== overhead Gross profit Gross loss Total direct expenses Departmental contributions to overhead Indirect expenses Total indirect expenses Direct expenses Advertising expense Cost of goods sold Depreciation expenseequipment - Rent expense Salaries expense