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 $270 per ATV. The remaining selling expenses are fixe Administrative expenses are 70% variable and 30% fixed. The company does not manufacture its own ATVs: it purchases them from supplier for $1.910 each POLARIX Income Statement-Consumer ATV Department For Year Ended December 31 Sales $666,400 Cost of goods sold 374,360 Gross margin 292,040 Operating expenses Selling expenses $165,000 Administrative expenses 42.600 207,600 Net Income $ 84,440 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.) Answer is complete but not entirely correct. Required: 1. Prepare an income statement for the current year using the contribution margin format. (Do not round intermedia Round contribution margin per ATV value to the nearest whole number.) Answer is complete but not entirely correct. POLARIX Income Statement - Consumer ATV Department For Year Ended December 31 Sales $ 666,400 Less: Variable expenses Variable cost of goods sold Total selling expenses Fixed administrative expenses x 374,360 52,920 12.780 440.060 226,340 Total variable expenses Contribution margin Less: Fixed expenses Fixed selling expenses Fixed administrative expenses 112,080 29 820 x Total fixed expenses Net Income (los) 141,900 84,440 2. For each ATV sold during this year, what is the contribution toward covering fixed expenses and earning income? Contribution margin per ATV: 1.1558