Below are departmental income statements for a guitar manufacturer. The manufact

Question

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.

Prepare a departmental contribution report that shows each department%u2019s contribution to overhead.(Input all amounts as positive values. Omit the "$" sign in your response.)

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.

Explanation / Answer

Acoustic Electric combined

Sales 102100 83800 185900

COGS 44975 47050 92025

gross profit 57125 36750 93875

Direct exp

Depreciation 10070 8520 18590

expense-equipment

salary exp. 19500 17500 37000

supplies exp. 1930 1780 3710

total dirct exp 31500 27800 59300

departmental 25625 8950 34575

contributions

Indirect expense

Advertising exp. 4985 4320 9305

Rent exp. 7035 6040 13345

utility 3025 2590 5615

total indrct exp. 10060 12950 28265

net income 10580 (4000) 6310

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