Polarix is a retailer of atvs and accessories. an income statement for the current year follows...
sales = $646,000
cost of goods sold = $311,100
gross margin = $334,900
operating expense
selling expenses $135,000
adminstrative expenses $59,500
total operating expenses $194,500
net income $140,400
ATVs sell on average for $3,800. Variable selling expenses are $270 each. The remaining selling expenses are fixed. Administrative expenses are 40% variable and 60% fixed. the company does not manufacture its own atvs; it purchases them from a supplier for $1,830 each.
1. prepare an income statement for this current year using the variable costing income statement.