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Below are departmental Income statements for a guitar manufacturer. The company classifies advertising, rent, and utilities as Indir expenses. The manufacturer is considering eliminating Its Electric Guitar department because it shows a loss. Electric $ 84,600 46,850 37,750 Departmental Income Statements For Year Ended December 31 Acoustic Sales $ 103,400 Cost of goods sold 45, 475 Gross profit 57,925 Expenses Advertising 4,995 Depreciation-Equipment 10,120 Salaries 19,600 Supplies used 1,990 Rent 7,35 Utilities 2,975 Total expenses 46,715 Income (loss) $ 11,210 4,320 8,590 17,100 1,780 6,000 2,570 40, 360 $ (2,610) 1. Prepare a departmental contribution to overhead report. 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 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 S 0 S 0 $ 0 Required Required 2 > 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?

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