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I need help Below are departmental income statements for a guitar manufacturer. The manufacturer is considering dropping its electric guitar department since it has a
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Below are departmental income statements for a guitar manufacturer. The manufacturer is considering dropping 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, 2015 Acoustic Sales $ 101.700 Cost of goods sold 45, 175 Electric $ 85,000 4 7,150 56,525 Gross profit Operating expenses Advertising expense Depreciation expense equipment Salaries expense Supplies expense Rent expense Utilities expense 5,035 10,070 19,700 1,940 7,025 3,045 37,850 4,320 8,520 17.900 1,790 6,020 2,600 46,815 41,150 Total operating expenses Net income (loss) $ 9,710 $ (3,300) 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, 2015 Acoustic Dept. Electric Dept Combined Direct expenses Total direct expenses Departmental contributions to overhead Indirect expenses Total indirect expenses
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