Use the following information to determine net income in the financial statements under GAAP:

Number of boats to be sold Upstream costs

Direct materials per boat

Direct labor per boat

$570$

$$5,350,000$

$$57,000$

$$37,000$

$$27,000$

$$2,350,000$

Assume the company wants to sell each boat for $25\%$ more than the cost to produce the boat.

Multiple Choice

$$ $$9,542,500$

$$7,700,000$

$$5,350,000$