Prepare an income statement-variable costing

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Reference no: EM13148299

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.

Reference no: EM13148299

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