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 $3,800 each. Variable selling expenses are $260 per ATV. The remaining selling expenses are fixed. Administrative expenses are 70% variable and 30% fixed. The company does not manufacture its own ATVs; it purchases them from a supplier for $1,840 each. POLARIX Income Statement-Consumer ATV Department For Year Ended December 31, 2015 Sales Cost of goods sold $ 665,000 322,000 Gross margin Operating expenses 343,000 Selling expenses Administrative expenses $125,000 41,500 166,500 Net income $176,500