Gig Harbor Boating is the wholesale distributor of a small recreational catamaran sailboat

Subject:BusinessPrice:3.87 Bought7

Share With

Gig Harbor Boating is the wholesale distributor of a small recreational catamaran sailboat. Management has prepared the following summary data to use in its annual budgeting process:

 

Budgeted unit sales	820
Selling price per unit	$2,130
Cost per unit	$1,500
Variable selling and administrative expenses (per unit)	$75
Fixed selling and administrative expenses (per year)	$400,000
Interest expense for the year	$29,000

 

Required:

Prepare the company’s budgeted income statement using an absorption income statement format shown below.