Exercise 19-8 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 rrent year follows. ATVs sell for $4,200 each. Variable selling expenses are $310 per ATV. The remaining selling expenses are fixed. Administrative expenses are 20% variable and 80% fixed. The company does not manufacture its own ATVs; it purchases them from a supplier for $1,870 each. POLARIX Income Statement-Consumer ATV Department For Year Ended December 31, 2017 Sales $655,200 Cost of goods sold 291,720 Gross margin 363,480 Operating expenses Selling expenses $140,000 Administrative expenses 40,500 180,500 Net income $182,980 Required: 1. Prepare an income statement for this current year using the contributon margin format. (Round contribution margin per ATV to the nearest dollar amount.) POLARIX Income Statement - Consumer ATV Department For Year Ended December 31, 2017 Net income $182,980 Required: 1. Prepare an income statement for this current year using the contribution margin format. (Round contribution margin per ATV to the nearest dollar amount.) POLARIX Income Statement - Consumer ATV Department For Year Ended December 31, 2017 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