Polarix is a retailer of ATVS (all-terrain vehicles) and accessories. An income statement for its...
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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 $3,200 each. Variable selling expenses are $290 per ATV. The remaining selling expenses are fixed. Administrative expenses are 60% variable and 40% fixed. The company does not manufacture its own ATVS; it purchases them from a supplier for $1,860 each. POLARIX Income Statement-Consumer ATV Department For Year Ended December 31 Sales Cost of goods sold Gross margin Operating expenses Selling expenses Administrative expenses $611,200 355,260 255,940 $145,000 42,300 187,300 $ 68,640 Net income 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.) POLARIX Income Statement - Consumer ATV Department For Year Ended December 31 Sales 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
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