Chapter 19 Variable Costing and Analysis ment for its Consumer elling expenses are $270 0% variable and 60% er for $1,830 each in format Polaris is a retailer of ATVs (all-terrain vehicles) and accessories. An income statement for it ATV Department for the current year follows. ATVs sell for $3,800 each. Variable selling expe per ATV. The remaining selling expenses are fixed. Administrative expenses are 40% variah fixed. The company does not manufacture its own ATVs; it purchases them from a supplier for si POLARIX Income Statement-Consumer ATV Department For Year Ended December 31, 2017 $646,000 311,100 334,900 Sales .............................. Cost of goods sold..... Gross margin..... Operating expenses Selling expenses...... Administrative expenses.... Net income.. $135.000 59,500 194,500 $140,400 1. Prepare an income statement for this current year using the contribution margin format. 2. For each ATV sold during this year, what is the contribution toward covering fixed expenses and earn- ing income