Below are departmental income statements for a guitar manufacturer. The manufacturer is considering dropping its electric guitar department since it has a net loss. The company classifies advertising, rent, and utilities expenses as indirect.
![1280_267-B-M-A-P-E (1026).png](https://secure.tutorsglobe.com/CMSImages/1280_267-B-M-A-P-E (1026).png)
(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 beeliminated?