Saved Help Save & Exit Sub Check my work Exercise 19-8 Contribution margin format income statement LO P2 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 $3,800 each. Variable selling expenses are $270 per ATV. The remaining selling expenses are fixed. Administrative expenses are 40% variable and 60% fixed. The company does not manufacture its own ATVs; it purchases them from a supplier for $1,830 each POLARIX Income Statement Consumer ATV Department For Year Ended December 31, 2017 Sales $646,000 Cost of goods sold 311,100 Gross margin 334,900 Operating expenses Selling expenses $135,000 Administrative expenses 59,500 194,500 Net income $140,400 Required: 1. Prepare an income statement for this 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, 2017 Saved Help 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