Item 10

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 760

Selling price per unit $ 2,100

Cost per unit $ 1,690

Variable selling and administrative expense (per unit) $ 90

Fixed selling and administrative expense (per year) $ 200,000

Interest expense for the year $ 26,000

Required:

Prepare the company's budgeted income statement for the year.