Exercise 19-8 Contribution margin format income statement LO P2 Polarix 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 $3,400 each. Variable selling expenses are $250 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 $1,850 each. POLARIX Income Statement-Consumer ATV Department For Year Ended December 31 Sales $629,000 Cost of goods sold 342,250 Gross margin 286,750 Operating expenses Selling expenses $ 155,000 Administrative expenses 40,500 195,500 Net income $ 91,250 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.) POLARIX Income Statement - Consumer ATV Department For Year Ended December 31 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