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 $4,000 each. Variable selling expenses are $260 per ATV. The remaining selling expenses are fixed. Administrative expenses are 50% variable and 50% fixed. The company does not manufacture its own ATVs; it purchases them from a supplier for $1,860 each. POLARIX Income Statement Consumer ATV Department For Year Ended December 31, 2017 Sales Cost of goods sold Gross margin Operating expenses Selling expenses $125.00 Administrative expenses 40, 700 Net income $656,000 3e5, 040 350,960 215,700 $135,260 Required: 1. Prepare an income statement for this current year using the contribution margin format (Round contribution margin per ATV to the nearest dollar amount.) POLARIX Income Statement - Consumer ATV Department For Year Ended December 31, 2017 Sales Less: Variable expenses Variable cost of goods sold $ 656,000 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