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 $31$ Acoustic Electric

Sales $ $102,000$ $ $83,100$

Cost of goods sold $45,57547,350$

Gross profit $56,42535,750$

Expenses

Advertising $5,0154,320$

Depreciation$$Equipment $10,1308,580$

Salaries $19,50017,400$

Supplies used $1,9701,790$

Rent $7,1056,030$

Utilities $2,9952,640$

Total expenses $46,71540,760$

Income $($loss$)$ $ $9,710$ $ $(5,010)$

Prepare a departmental contribution to overhead report.

Based on contribution to overhead, should the electric guitar department be eliminated?