U Polarter of ATS en werd oor Department for the current year follows. AT $1.400 each 520ATV The remagsgespeses areed An expense 20 and the does not mature on ATV desentrom For earded December 1, 2017 Cost of see Operating Selling wees Mistrative expenses Not income 19, Required 1. Prepare an income alement for the current year using the command margin per ATV Deres del munt) FATY Gray ATV Oak Mart, a producer of solid oak tables, reports the following data from its second year of business $ 330 per unit 110,000 units 113,000 units 3,000 units $ 405,000 210,000 $ 615,000 Sales price per unit Units produced this year Units sold this year Units in beginning-year inventory Beginning inventory costs Variable (3,000 units * $135) Fixed (3,000 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 $ 48 per unit 64 per unit s $3,200,000 $7,200,000 $1,450,000 4,200,000 2. Prepare the current year income statement for the company using absorption costing. OAK MART COMPANY Absorption Costing Income Statement Sales Less: Cost of goods sold Beginning inventory Manufacturing costs this year Direct materials Direct labor Variable overhead costs Fixed overhead costs Less: Ending inventory Cost of goods sold Gross margin Selling general and administrative expenses Fixed selling and administrative costs Variable selling and administrative expenses Net income (loss) Net income under variable costing is higher than net income under absorption costing by Fixed costs added to subtracted from) Inventory Check my work 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 $3,400 each. Variable selling expenses are $280 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 $1.890 each. POLARIX Income Statement-Consumer ATV Department For Year Ended December 31, 2017 Sales $618,800 Cost of goods sold 343,980 Gross margin 274,820 Operating expenses Selling expenses $140,000 Administrative expenses 41,400 181,480 Net income $.93,420 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.) ces POLARIX Income Statement - Consumer ATV Department For Year Ended December 31, 2017 Contribution margin 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: