Reference no: EM132510269

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 expense (per unit)      $ 50

Fixed selling and administrative expense (per year)      $ 196,000

Interest expense for the year                                   $ 13,000

Required:

Question 1: Prepare the company‘s budgeted income statement for the year.