15 110 polnts value Seattle Cat is the wholesale distributor

15. 110 polnts value Seattle Cat 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) Fixed selling and administrative expenses (per year) $1.000 Interest expense for the year 380 s 1.850 s 1,445 5 67 S 13.400 Required: Prepare the company\'s budgeted income statement using an absorption income statement format shown below. Seattle Cat Budgeted Income Statement

Solution

Answer

seattle cat budgeted income statement

sales ( 380 * 1850 )	703000
cost of goods sold ( 380 * 1445 )	549100
gross profit	153900
selling and administrative expenses ( 67 * 380 + 91000 )	116460
income from operations	37440
interest expense	13400
net income	24040