Below are departmental income statements for a guitar manufacturer. The company classifies advertising, rent, and utilities...

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Below are departmental income statements for a guitar manufacturer. The company classifies advertising, rent, and utilities as indirect expenses. The manufacturer is considering eliminating its Electric Guitar department because it shows a loss. Departmental Income Statements For Year Ended December 31 Sales Cost of goods sold Gross profit Expenses Advertising Depreciation-Equipment Salaries Supplies used Rent Utilities Total expenses Electric 47,250 Acoustic $ 102,600 45,475 57,125 $ 83,300 36,050 5,065 4,260 10,140 8,580 19,300 17,400 1,970 1,730 7,095 5,990 2,975 2,570 46,545 40,530 Income (loss) $ 10,580 $ (4,480) 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 Gross profit Direct expenses Total direct expenses Departmental contribution to overhead Acoustic Electric Combined 0 0 $ 0 0 0 0 < Required 1 Required 2 > Below are departmental income statements for a guitar manufacturer. The company classifies advertising, rent, and utilities as indirect expenses. The manufacturer is considering eliminating its Electric Guitar department because it shows a loss. Departmental Income Statements For Year Ended December 31 Sales Cost of goods sold Gross profit Expenses Advertising Depreciation-Equipment Salaries Supplies used Rent Utilities Total expenses Electric 47,250 Acoustic $ 102,600 45,475 57,125 $ 83,300 36,050 5,065 4,260 10,140 8,580 19,300 17,400 1,970 1,730 7,095 5,990 2,975 2,570 46,545 40,530 Income (loss) $ 10,580 $ (4,480) 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 Gross profit Direct expenses Total direct expenses Departmental contribution to overhead Acoustic Electric Combined 0 0 $ 0 0 0 0 < Required 1 Required 2 >