Review Polaris’ income statement in Appendix A and identify its revenues for the years ended December 31, 2011, December 31, 2010, and December 31, 2009. For the year ended December 31, 2011, Polaris reports the following product revenue mix. (Assume that its product revenue mix is the same for each of the three years reported when answering the requirements.)

Required

1. Compute the amount of revenue from each of its product lines for the years ended December 31, 2011, December 31, 2010, and December 31, 2009.

2. If Polaris wishes to evaluate each of its product lines, how can it allocate its operating expenses to each of them to determine each product line’s profitability?

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Off-Road Vehicles Parts, Garments, & Accessories Snowmobiles On-Road Vehicles 15% 69% 1% 5%