Gig Harbor Boating is the wt esale distributor of a small recreational cafamaran

Question

Gig Harbor Boating is the wt esale distributor of a small recreational cafamaran salboat. Management h prepared the following summ.ay data to use in its annual budgeting process Budgeted unit sales Seling price per unit Cost per unit Variable selling and administrative expenses (per unit) Fixed selling and administrative expenses (per year) Interest expense for the year 540 ,990 3 1,585 5 70 $140,000 1 15,000 Required: Prepare the company's b dgeted income statement using an abso absorption income statement format shown below Budgeted Income Statement Type here to search

Explanation / Answer

Budgeted Income Statement Sales                           1,074,600.00 Less: Cost of Goods Sold                              855,900.00 Gross Margin                              218,700.00 Less: Selling and manufacturing expenses                              177,800.00 (both fixed and variable) Interest Expense for the year                                 15,000.00 Net Profit                                 25,900.00

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