Exercise 06-8 Contribution margin format income statement LO P2 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 foed Administrative expenses are 40% variable and 60% fixed. The company does not manufacture its own ATVs, it purchases them from a supplier for $1,830 each. POLARIX Income Statement-Consumer ATV Department For Year Ended December 31 Sales Cost of goods sold Gross margin Operating expenses Selling expenses $ 135,000 Administrative expenses $9,500 Net Income $ 646,000 311,100 334,900 194,500 $ 140,400 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.) Homework i Sayed Income Statement - Consumer ATV Department For Year Ended December 31 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