value 10.00 points Gig Harbor Boating is the wholesale distributor of a small re
ID: 2556066 • Letter: V
Question
value 10.00 points 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 Selling price per unit Cost per unit Variable selling and administrative expenses (per unit) $50 Fixed selling and administrative expenses (per year) $200,000 Interest expense for the year 680 $2,060 $1,680 $22,000 Required: Prepare the company's budgeted income statement using an absorption income statement format shown Gig Harbor Boating Budgeted Income Statement DOLLExplanation / Answer
Budgeted income statement:
Computations:
Sales = 680*2060 = $1,400,800
cost of goods sold = 680*1680 = $1,142,400
Variable selling & administrative expenses = 680*50 = 34,000
Total selling & administrative expenses = variable+fixed = 34,000+200,000 = 234,000
Sales 1,400,800.00 cost of goods sold 1,142,400.00 Gross margin 258,400.00 Selling & administrative expenses 234,000.00 Net operating income 24,400.00 Interest expense 22,000.00 Net income 2,400.00Related Questions
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