Polarix is a retailer of ATVs (allzerrain 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 $260 per ATV. The remaining selling expenses are fixed. Administrative expenses are 20% variable and 80% fixed. The company does not manufacture its own ATVs: It purchases them from a supplier for $1.870 each POLARIX Income Statement-consumer ATV Department For Year Ended December 31 Sales $646,000 Cost of goods sold 355,300 Gross margin 290,700 Operating expenses Selling expenses $145,000 Administrative expenses 40,400 185,400 Net income $105,300 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.) 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 0 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: Required information [The following information applies to the questions displayed below.] Oak Mart, a producer of solid oak tables, reports the following data from its second year of business. 320 per unit 205.000 units 108,750 units 3,750 units $ 525 000 262,500 $ 787,500 Sales price per unit Units produced this year Units sold this year Units in beginning-year inventory Beginning inventory costs Variable (3,750 units $240) Fixed (3,750 units * $70) Total Manufacturing costs this year Direct materials Direct labor Overhead costs this year Variable overhead Fixed overhead Selling and administrative costs this year Variable Fixed 42 per unit co per unit $3,200,000 $7,600,000 $1,350,000 4,600,000 2 Prepare the current-year Income statement for the company using absorption costing. 2. Prepare the current-year Income statement for the company using absorption costing. OAK MART COMPANY Absorption Costing Income Statement Sales $ 33.712.500 Less: Cost of goods sold Beginning inventory Manufacturing costs this year Direct materials 4.410.000 Direct labor 6.300,000 Fixed overhead costs 787,500 Beginning inventory 11.497.500 Net income (loss) Fixed costs added to subtracted from) inventory