Bob's Bistro produces party-sized hoagie sandwiches. For next year, Bob's Bistro predicts that 55,000 units will be produced with the following total costs: Direct materials Direct labor ? $75,000 Variable overhead Fixed overhead 23,000 205,000 Next year, Bob's Bistro expects to purchase $128,500 of direct materials. Projected beginning and ending inventories for direct materials and work in process are as follows: Beginning Ending Direct materials Inventory $6,000 $5,900 Work-in-Process Inventory $13,900 $15,900 Next year, Bob's Bistro expects to produce 55,000 units and sell 54,300 units at a price of $17.00 each. Beginning inventory of finished goods is $43,500, and ending inventory of finished goods is expected to be $35,000. Total selling expense is projected at $23,000, and total administrative expense is projected at $112,500. Required: 1. Prepare an income statement in good form. Round the percent to four decimal places before converting to a percentage. For example, .88349 would be rounded to .8835 and entered as 88.35. Sales Bob's Bistro Income Statement For the Coming Year Percent % Cost of goods sold Gross margin Less: Operating expenses Selling expenses Administrative expenses Operating income Feedback Check My Work 1. See Example 2.4 % % 2. What if the operating expenses percentage for the past few years was 44.46 percent? Management's reaction might be: Investigate production cost management