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olarix is a retailer of atvs (all-terrain vehicles) and accessories. An income statement for its Consumer ATV Department for the current year follows. ATV sell for 3,400 each. Variable selling expenses are $210 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 $1,920 each.

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 $210 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 $1,920 each. POLARIX Income Statement-Consumer ATV Department For Year Ended December 31 Sales $615,400 Cost of goods sold 347,520 Gross margin 267,880 Operating expenses Selling expenses $160,000 Administrative expenses 42,500 202,500 Net income $ 65,380 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.) POLARIX Income Statement - Consumer ATV Department For Year Ended December 31 Sales 615,400 Less: Variable expenses Variable cost of goods sold Variable selling expenses Total selling expenses 25,500 347,520 38,010 411.030 Total variable expenses Contribution margin Less: Fixed expenses Fixed administrative expenses Fixed selling expenses @ 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