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Question - 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
480
Selling price per unit
$1,960
Cost per unit
$1,350
Variable selling and administrative expense (per unit)
$40
Fixed selling and administrative expense (per year)
$225,000
Interest expense for the year
$12,000
Required - Prepare the company's budgeted income statement for the year?
Assume that a commercial airplane manufacturing company's annual fixed costs for the widebody passenger jet are $1,425 million, and its variable cost per airplane is $90 million.
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