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 $101,900 $83, 100 Cost of goods sold 44,275 47,350 Gross profit 57.625 35,750 Operating expenses Advertising expense 4,985 4,280 Depreciation expense-Equipment 10,100 8,560 Salaries expense 19,600 17,800 Supplies expense 1,950 1,800 Rent expense 7,085 5,989 Utilities expense 2,965 2,630 Total operating expenses 46,685 41,050 Net income (loss) $ 10,940 $(5,300) 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: 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 Annie Contenant China 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 Combined ok Acoustic Dept. Electric Dept. ht Direct expenses int rences 0 0 0 Total direct expenses Departmental contributions to overhead Indirect expenses $ 0 $ 0 $ 0 Total indirect expenses 0 0 Required Required 2 > Tc raw 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 $101,900 $83, 100 Cost of goods sold 44,275 47,350 Gross profit 57.625 35,750 Operating expenses Advertising expense 4,985 4,280 Depreciation expense-Equipment 10,100 8,560 Salaries expense 19,600 17,800 Supplies expense 1,950 1,800 Rent expense 7,085 5,989 Utilities expense 2,965 2,630 Total operating expenses 46,685 41,050 Net income (loss) $ 10,940 $(5,300) 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: 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 Annie Contenant China 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 Combined ok Acoustic Dept. Electric Dept. ht Direct expenses int rences 0 0 0 Total direct expenses Departmental contributions to overhead Indirect expenses $ 0 $ 0 $ 0 Total indirect expenses 0 0 Required Required 2 > Tc raw