5 Polartx 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 $290 per ATV. The remaining selling expenses are fixed. Administrative expenses are 70% variable and 30% fixed. The company does not manufacture its own ATVs; it purchases them from a supplier for $1,840 each. Sales Cost of goods sold Gross margin Income Statement-Consumer ATV Department For Year Ended December 311 Operating expenses Selling expenses POLANEX Administrative expenses Net Income Sales $155,000 43,500 $624,000 207,040 336,960 497,500 $139,460 Required: 1. Prepare an income statement for the current year using the contribution margin format. (Do not round intermedinte calculations. Round contribution margin per ATV value to the nearest whole number.) Answer is not complete. POLARIX Income Statement Consumer ATV Department For Year Ended December 31 Return to ques 1. Prepare an income statement for the current year using the contribution margin f Round contribution margin per ATV value to the nearest whole number.) Sales Less: Variable expenses Variable cost of goods sold Variable selling expenses Variable administrative expenses Variable selling expenses POLARIX Income Statement - Consumer ATV Department For Year Ended December 31 Less: Fixed expenses Fixed administrative expenses Fixed selling expenses Net income (loss) X Answer is not complete. x 0 0 Less: Vanable expenses Variable cost of goods sold Variable selling expenses Variable administrative expenses Variable selling expenses Less: Fixed expenses Fixed administrative expenses Fixed selling expenses 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 0 0