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 460 Selling price per unit $ 1,950 Cost per unit $ 1,575 Variable selling and administrative expense (per unit) $ 75 Fixed selling and administrative expense (per year) $ 105,000 Interest expense for the year $ 14,000 Required:
Prepare the company's budgeted income statement using an absorption income statement format shown below Gig Harbor Boating Budgeted Income Statement Sales 897,000 Cost of goods sold (724,500) Gross margin 172,500 Selling and administrative expenses (139,500) Net operating income 33,000 14,000 Interest expense 19,000 Net income