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Help with contribution margin questions Polarix is a retailer of ATVs...

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Accounting

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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 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 31,2015 $646,000 311.100 334,900 Sales .. CSA.... Cost of goods sold Gross margin Operating expenses $135,000 Selling expenses Administrative expenses.. 59,500 194,500 Net income... $140400 1. Prepare an income statement for this current year using the contribution margin format. 2. For each ATV sold during this year, what is the contribution toward covering fixed expenses and earn- ing income

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