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Chapter 19. Exercises Help Save & Chec! 3 Exercise 19-8 Contribution margin format income statement LO P2 Polarox 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 $4,000 each. Variable selling expenses are $280 per ATV. The remaining selling expenses are fixed Administrative expenses are 40% variable and 50% fixed. The company does not manufacture its own ATVs; it purchases them from a supplier for $1.860 each 5 po TORTY The St-Consumer ATV Depart Torre Dec, 2017 Sales Cost of good old Crewargi Opening we $140.000 Administrative penas 2,200 wat in 66,000 30. 355.20 AL 200 $173.010 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.) POLAROC Income Tament - Comer ATV Department For Year Ended December 31, 2017 Sales $164.000 Saved Chapter 19. Exercises 3 Income Statement - Consumer ATV Department For Year Ended December 31, 2017 $ 664,000 Sales Less: Variable expenses Variable cost of goods sold Variable selling expenses Variable administrative expenses points $ 308,760 $ 16,880 Book Hint Ask 325,640 Print Total variable expenses Contribution margin Less: Fixed expenses Fixed selling expenses Fixed administrative expenses References 0 Net income (los) 2. For ench ATV sold during this year, what is the contribution toward covering fixed expenses and earning Income? Contribution margin per ATV: Mc Graw Hill