Two part question

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, 2019 Acoustic Electric Sales $103,100 $ 84,700 Cost of goods sold 45,175 47,250 Gross profit 57,925 37,450 Operating expenses Advertising expense 5,005 4,340 Depreciation expense-Equipment 10,090 8,510 Salaries expense 19,500 17,900 Supplies expense 1,980 1,800 Rent expense 7,045 5,989 Utilities expense 2,995 2,600 Total operating expenses 46,615 41,130 Net income (loss) $ 11,310 $(3,680) 1. Prepare a departmental contribution report that shows each department's contribution to overhead. 2. Based on contribution to overhead, should the electric guitar department be eliminated? Complete this question by entering your answers in the tabs below. Required 1 Required 2 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, 2019 Acoustic Dept. Electric Dept. Combined Direct expenses 0 0 0 Total direct expenses Departmental contributions to overhead Indirect expenses $ 0 $ 0 $ 0 > 103, 100 45,175 57,925 > 64,700 47,250 37,450 Sales Cost of goods sold Gross profit Operating expenses Advertising expense Depreciation expense-Equipment Salaries expense Supplies expense Rent expense Utilities expense Total operating expenses Net income (loss) 5,805 4,340 10,090 8,510 19,500 17,900 1,980 1,800 7,045 5,980 2,995 2,600 46,615 41,130 $ 11,310 513,680) 1. Prepare a departmental contribution report that shows each department's contribution to overhead. 2. Based on contribution to overhead, should the electric guitar department be eliminated? Complete this question by entering your answers in the tabs below. es Required 1 Required 2 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, 2019 Acoustic Dept. Electric Dept. Combined Direct expenses 0 0 0 Total direct expenses Departmental contributions to overhead Indirect expenses $ 0 $ 0 $ 0 Total Indirect expenses 0 $ 0 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, 2019 Acoustic Electric Sales $103,100 $ 84,700 Cost of goods sold 45, 175 47,250 Gross profit 57,925 37,450 Operating expenses Advertising expense 5,005 4,340 Depreciation expense-Equipment 10,090 8,510 Salaries expense 19,500 17,900 Supplies expense 1,980 1,800 Rent expense 7,045 5,980 Utilities expense 2,995 2,600 Total operating expenses 46,615 41,130 Net income (loss) $ 11,310 $(3,680) 1. Prepare a departmental contribution report that shows each department's contribution to overhead. 2. Based on contribution to overhead, should the electric guitar department be eliminated? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Based on contribution to overhead, should the electric guitar department be eliminated? Based on contribution to overhead, should the electric guitar department be eliminated?