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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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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 60% variable and 40% 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 $646.000 Cost of goods sold 321,300 Gross margin 324,700 Operating expenses Selling expenses 5140,000 Administrative expenses 42,200 182,200 Net income $142,500 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 For Year Ended December 31 Sales Net income (loss) 0 2. For each ATV sold during this year, what is the contribution toward covering fixed expenses and earning Income

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