Business, 25.07.2020 20:01 viv1302

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. WHOLESALE GUITARS Departmental Income Statements For Year Ended December 31, 2017 Acoustic Electric Sales $ 101,700 $ 83,800 Cost of goods sold 43,775 47,050 Gross profit 57,925 36,750 Operating expenses Advertising expense 5,045 4,280 Depreciation expense—equipment 10,090 8,570 Salaries expense 19,800 17,600 Supplies expense 1,930 1,800 Rent expense 7,095 5,980 Utilities expense 2,945 2,570 Total operating expenses 46,905 40,800 Net income (loss) $ 11,020 $ (4,050 ) 1. Prepare a departmental contribution report that shows each department’s contribution to overhead.

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Below are departmental income statements for a guitar manufacturer. The manufacturer is considering...