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Polaris 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 $4,200 each. Variable selling expenses are $280 per ATV. The remaining selling expenses are fixed. Administrative expenses are 10% variable and 90% 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 $659,400 Cost of goods sold 293, 590 Gross margin 365, 810 Operating expenses Selling expenses $180,000 Administrative expenses 42,100 222,100 Not income $143, 710 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.) S POLARIX Income Statement - Consumer ATV Department For Year Ended December 31 Sales Less Vanable expenses Variable cost of goods sold $ (293,500) Variable selling expenses Vanable administrative expenses 659,400 (293,590) Total variable expenses Contribution margin Less Foxed expenses Fixed selling expenses Fixed administrative expenses 180,000 Fixed selling expenses Fixed administrative expenses 180,000 Total fixed expenses Net income (loss) 180,000 143,710 $ 2. For each ATV sold during this year, what is the contribution toward covering fixed expenses and earning income? Contribution margin per ATV

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