Seved Help Save & Exit 2 Homework Exercise 22-7 Departmental contribution report LO P3 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. Electric $83,7ee 47,350 36, 350 WHOLESALE GUITARS Departmental Income Statements For Year Ended December 31, 2019 Acoustic Sales $181,900 Cost of goods sold 44,375 Gross profit 57,525 Operating expenses Advertising expense 5,805 Depreciation expense-Equipment 10,070 Salaries expense 19,500 Supplies expense 1,960 Rent expense 7,065 Utilities expense 2,975 Total operating expenses 46,575 Net income (loss) $ 10,95e 4,280 8,580 17,300 1,750 5,950 2,640 40,5ee $(4,150) 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? Activate Wint Go to Settings to amework i Saved Income Statement Showing Departmental Contribution to Overhead For Year Ended December 31, 2019 Acoustic Dept. Electric Dept. Combined Direct expenses Total direct expenses Departmental contributions to overhead Indirect expenses Total indirect expenses Prev 3 of 5 F Next > 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? ased on contribution to overhead, should the electric guitar department be eliminated?