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 $4,000 each. Variable selling expenses are $210 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 $1,830 each.

POLARIX Income StatementConsumer ATV Department For Year Ended December 31, 2017
Sales				$	652,000
Cost of goods sold					298,290
Gross margin					353,710
Operating expenses
Selling expenses	$	165,000
Administrative expenses		41,900			206,900
Net income				$	146,810

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: