Exercise 7-8 Budgeted Income Statement [LO7-9]

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	500
Selling price per unit	$1,970
Cost per unit	$1,460
Variable selling and administrative expenses (per unit)	$50
Fixed selling and administrative expenses (per year)	$196,000
Interest expense for the year	$13,000

Required:

Prepare the companys budgeted income statement using an absorption income statement format.