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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
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. Vaiable selling expenses are $310 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 $1,880 each POLARIX Income Statement-Consumer ATV Department For Year Ended December 31, 2015 Sales Cost of goods sold $604,800 355,320 249,480 Gross margin Operating expenses $ 125,000 Selling expenses Administrative expenses 42,000 167,000 Net income $82,480 Required 1. Prepare an income statement for this current year using the contribution margin format POLARIX Income Statement Consumer ATV Department For Year Ended December 31, 2015 Net income (loss) or eac sold during this year, what is the contribution toward covering fixed expenses and earning income Contribution margin per AIV
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