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	700
Selling price per unit	$2,070
Cost per unit	$1,605
Variable selling and administrative expenses (per unit)	$60
Fixed selling and administrative expenses (per year)	$200,000
Interest expense for the year	$23,000

1. Prepare the companys budgeted income statement using an absorption income statement format shown below