Connect lomework Saved Polarix is a retailer of ATVs (all-terrain vehicles) and

Question

Connect lomework Saved 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 seling expenses are fixed Administrative expenses are 40% variable and 60%nxed. The company does not manufacture its own Ark purchases them too supplier for $1,830 each. Income Statenent-Comsumer ATV Department Tor Year Inded December 31, 201 646,000 Cost of goods sold s nargi Opera 1n expense 135,0DD 59-50019 500 Adainistrative expenses Net inoome 140 400 1. Prepare an income statement for this current year using the contribution margin format. (Do not round Intermedlate calculations Round contribution margin per ATV value to the nearest whole number) income Statement-Consumer ATV Department For Year Ended 1,2017 ?Prek 160,79 ??? Next >

Explanation / Answer

Number of ATVs sold = $646000/$3800 = 170

POLARIX Income Statement - Consumer ATV Department For Year Ended December 31, 2017 Sales 646000 Variable expenses: Cost of goods sold (170 x $1830) 311100 Selling expenses (170 x $270) 45900 Administrative expenses ($59500 x 40%) 23800 Total variable expenses 380800 Contribution margin 265200 Fixed expenses: Selling expenses ($135000 - $45900) 89100 Administrative expenses ($59500 x 60%) 35700 Total fixed expenses 124800 Net income 140400

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