Help Save & Exit Submit Chapter 19 Homework Check my work 4 Polarix is a retaile

Question

Help Save & Exit Submit Chapter 19 Homework Check my work 4 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 $3,400 each. Variable selling expenses are $300 per ATV. The remaining selling expenses are fixed Administrative expenses are 60% variable and 40% fixed. The company does not manufacture its own ATVS it purchases them from a supplier for $1,850 each. 10 points POLARIX Income Statement-Consuner ATV eBook Hint Print References Sales Cost of gooda sold Gross margin Operating expenses $656,200 357,050 299,150 $155,000 Selling expenses Adninistrative expenses 42,300197,300 101,850 Net income 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 K Prex 4 of 5 Next

Explanation / Answer

INCOME STATEMENT-CONTIRBUTION FORMAT: Sales revenue (193 units @ 3400) 656200 Less: Variable cost Cost of goods sold (193 units @ 1850) 357050 Variable Selling expense (193 units @ 300) 57900 Vvariable Admimn Expense(42300*60%) 25380 Total Variable cost 440330 Contribution margin 215870 Less: Fixed cost: Selling expense (155,000-57900) 97100 Admin expense (42300*40%) 16920 Total Fixed cost 114020 Net income 101850 Req 2: Contribution per ATV (215870/193) 1,118

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