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 $4,400 each. Variable selling expenses are $270 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 $1,900 each. POLARIX Income Statement-Consumer ATV Department For Year Ended December 31, 2017 Sales $633, 600 Cost of goods sold 273,600 Gross margin 360,000 Operating expenses Selling expenses $165,000 Administrative expenses 40,800 205,800 Net income $154,200 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.) 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.) % Answer is not complete. $622,600 X POLARIX Income Statement - Consumer ATV Department For Year Ended December 31, 2017 Sales Less: Variable expenses Variable cost of goods sold 273.600 Variable selling expenses Variable administrative expenses 273,600 Contribution margin Less: Fixed expenses Fixed selling expenses 165,000 Total administrative expenses Total fixed expenses Net income (loss) 165,000 2. For each ATV sold during this year, what is the contribution toward covering fixed expenses and earning income? Contribution margin per ATV