eBook Question Content Area Income Statement Bobs Bistro produces party-sized hoagie sandwiches. For next year, Bobs Bistro predicts that 54,100 units will be produced with the following total costs: Direct materials ? Direct labor $56,000 Variable overhead 19,000 Fixed overhead 190,000 Next year, Bobs Bistro expects to purchase $127,500 of direct materials. Projected beginning and ending inventories for direct materials and work in process are as follows: Direct materials Inventory Work-in-Process Inventory Beginning $5,000 $14,200 Ending $4,900 $16,200 Next year, Bobs Bistro expects to produce 54,100 units and sell 53,400 units at a price of $18.00 each. Beginning inventory of finished goods is $38,500, and ending inventory of finished goods is expected to be $30,000. Total selling expense is projected at $21,500, and total administrative expense is projected at $102,500. Required: Question Content Area 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 $- Select - - Select - % - Select - - Select - % $- Select - - Select - % Less: Operating expenses $- Select - - Select - - Select - - Select - % $- Select - - Select - % Question Content Area 2. What if the operating expenses percentage for the past few years was 38.52 percent? Management's reaction might be: