Bob's Bistro produces party-sized hoagie sandwiches. For next year, Bob's Bistro predicts that 54,800 units will be produced with the following total costs: Direct materials Direct labor Variable overhead Fixed overhead $52,000 23,000 220,000 Next year, Bob's Bistro expects to purchase $127,500 of direct materials. Projected beginning and ending inventories for direct materials and work in process are as follows: Beginning Ending Direct materials Inventory $7,000 $6,900 Work-in-Process Inventory $13,300 $15,300 Next year, Bob's Bistro expects to produce 54,800 units and sell 54,100 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 $20,000, and total administrative expense is proje 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. Bob's Bistro Income Statement For the Coming Year Percent % % % Less: Operating expenses % % 2. What if the operating expenses percentage for the past few years was 59.01 percent? Management's reaction might be: