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 expense (per unit) Fixed selling and administrative expense (per year) Interest expense for the year Required: Prepare the company's budgeted income statement for the year. Gig Harbor Boating Budgeted Income Statement 840 $ 2,140 $ 1,700 $85 $225,000 $ 30,000
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
![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 expense (per
unit)
Fixed selling and administrative expense (per year)
Interest expense for the year
Required:
Prepare the company's budgeted income statement for the year.
Gig Harbor Boating
Budgeted Income Statement
840
$ 2,140
$ 1,700
$ 85
$ 225,000
$ 30,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc8f05c49-8089-4092-b265-7f390ec44542%2F115e65ca-4ba3-4f65-a040-ab806f33bd7f%2Fzn85h1a_processed.png&w=3840&q=75)
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