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	640
Selling price per unit	$2,040
Cost per unit	$1,370
Variable selling and administrative expenses (per unit)	$75
Fixed selling and administrative expenses (per year)	$300,000
Interest expense for the year	$20,000

Required:

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