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

Required:

Prepare the company’s budgeted income statement. Use the absorption costing income statement format shown in Schedule 9. 

Budgeted unit sales S460 Selling price per unit Cost per unit S1,950 $1,575 Variable selling and administrative expenses (per unit) $75 Fixed selling and administrative expenses (per unit) S105,000 Interest expenses for the $14,000 year