5 Polarlx is a retailer of ATVs (all-terrain vehicles) and accessories. An income statement for its Consumer ATV Department for the current year follows. ATVs sell for $3,800 each. Variable selling expenses are $260 per ATV. The remaining selling expenses are fixed. Administrative expenses are 10% variable and 90% fixed. The company does not manufacture its own ATVs, it purchases them from a supplier for $1,870 each. 18.18 points POLARIX Income Statement-Consumer ATV Department For Year Ended December 31 Sales $630,800 Cost of goods sold 310,420 Gross margin 320, 380 Operating expenses Selling expenses $135, eee Administrative expenses 41,300 176,300 Net income $144,080 X 02:00:32 Required: 1. Prepare an income statement for the current year using the contribution margin format. (Do not round intermediate calculations. Round contribution margin per ATV value to the nearest whole number.) $ 630,800 POLARIX Income Statement - Consumer ATV Department For Year Ended December 31 Sales Less: Variable expenses Variable administrative expenses $ 4,130 Variable cost of goods sold 310,420 Variable selling expenses 43.160 357,710 Total variable expenses Contribution margin Net income (loss) 2. For each ATV sold during this year, what is the contribution toward covering fixed expenses and earning income? Contribution margin per ATV