Seattle Cat 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 380
Selling price per unit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,850
Cost per unit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,425
Variable selling and administrative expenses (per unit) . . . . . . . $ 85
Fixed selling and administrative expenses (per year) . . . . . . . . . $105,000
Interest expense for the year . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 11,000

Required:
Prepare the company’s budgeted income statement using an absorption income statement format as shown in Schedule 9.