Prepare an income statement-variable costing

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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
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.

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