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indirect expenses. The manufacturer is considering eliminating its Electric Guitar department because it shows a loss. Departmental Income Statements For Year Ended December 31 Acoustic Electric Sales $ 101,700 $ 83, 100 Cost of goods sold 44, 475 47,750 Gross profit 57, 225 35, 350 Expenses Advertising 5, 045 4,300 Depreciation-Equipment 10,090 8,560 Salaries 19,900 17, 400 Supplies used 1,990 1,730 Rent 7,005 5,960 Utilities 3,035 2,640 Total expenses 47, 065 40,590 Income (loss) $ 10, 160 $ (5,240) 1. Prepare a departmental contribution to overhead report. 2. Based on contribution to overhead, should the electric guitar department be eliminated? Prepare a departmental contribution to overhead report. Departmental Contribution to Overhead For Year Ended December 31 Acoustic Electric Combined Direct expenses Total direct expenses 0 0 0 Departmental contribution to overhead $ 0 $ 0 $ 0