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 $4,200 each. Variable selling expenses are $260 per ATV. The remaining selling expenses are fixed. Administrative expenses are 60% variable and 40% fixed. The company does not manufacture its own ATVs, it purchases them from a supplier for $1,820 each. POLARIX Income Statement-Consumer ATV Department For Year Ended December 31, 2017 Sales $625,800 Cost of goods sold 271, 180 Gross margin 354,620 Operating expenses Selling expenses $135,000 Administrative expenses 41,800 176,800 Net income $177,820 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 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