Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  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...

50.1K

Verified Solution

Question

Accounting

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 $4,000 each. Variable selling expenses are $320 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 $1,810 each.

POLARIX Income StatementConsumer ATV Department For Year Ended December 31
Sales $ 656,000
Cost of goods sold 296,840
Gross margin 359,160
Operating expenses
Selling expenses $ 175,000
Administrative expenses 42,500 217,500
Net income $ 141,660

1. Prepare an income statement for the current year using the contribution margin format.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

the correct answer based his work on the following concepts Theory of History The Labor...

Biology
Q

Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 2016, were...

Accounting
Q

What is the critical value t* for a 99% confidence interval when n = 20?

Statistics
Q

y"-2y'+2y = x^2+e^2x

Advance Math
Q

Humans identify favorable traits in organisms and purposely breed them to produce those traits in...

Biology
Q

Two spheres A and B have the same radii but the heat capacity of A...

Physics
Q

1 Two sound waves emerging from a source reach a point simultaneously along two path...

Physics
Q

c 1 m s A body of mass m 3 513 kg is moving along...

Physics
Q

The volume of the doorstep sketched below 4 inches 1 inch The side is y...

Geometry
Q

Obtain an estimate for the following computation by rounding the numbers so that the resulting...

Basic Math
Q

Simon operates an HST-registered mobile glass repair service in Ontario. His service revenue for the...

Accounting
Q

In calculating insurance premiums, the actuarially fair insurance premium is the premium that results in...

Finance