Bob's Bistro produces party-sized hoagie sandwiches. For next year, Bob's Bistro predicts that 52,000 units will be produced with the following total costs: Next year, Bob's Bistro expects to purchase $130,000 of direct materials. Projected beginning and ending inventories for direct materials and work in process are as follows: Next year, Bob's Bistro expects to produce 52,000 units and sell 51,300 units at a price of $13.00 each. Beginning inventory of finished goods is $48,500, and ending inventory of finished goods is expected to be $40,000. Total selling expense is projected at $27,000, and total administrative expense is projected at $116,000. 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. 2. What if the operating expenses percentage for the past few years was 66.22 percent? Management's reaction might be