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 $3,200 each. Variable selling expenses are $280 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 $1,810 each.

POLARIX Income StatementConsumer ATV Department For Year Ended December 31, 2015
Sales			$	659,200
Cost of goods sold				372,860
Gross margin				286,340
Operating expenses
Selling expenses	$	140,000
Administrative expenses		43,000		183,000
Net income			$	103,340

Required:

1.	Prepare an income statement for this current year using the contribution margin format.

2. For each ATV sold during this year, what is the contribution toward covering fixed expenses and earning income?