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Below are departmental income statements

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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.

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(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?

Reference no: EM13907525

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