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  3. polarix is a retailer of atvs (all-terrain vehicle

Polarix is a retailer of ATVs (all-terrain vehicles) and accessories. An income statement for its...

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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 $290 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 $1,890 each POLARIX Income Statement-Consumer ATV Department For Year Ended December 31 Sales $619,400 Cost of goods sold 308,070 Gross margin 311,330 Operating expenses Selling expenses $160,000 Administrative expenses 41,100 201,100 Net income $110,230 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.)

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