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 $290 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 $1,900 each. Sales POLARIX Income Statement-Consumer ATV Department For Year Ended December 31 $672,000 Cost of goods sold 304,000 Gross margin 368,000 Operating expenses Selling expenses Net income Administrative expenses $140,000 42,400 182,400 $185,600 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 Less: Variable expenses Variable administrative expenses Variable cost of goods sold Variable selling 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: 0