Income Statement Bob's Bistro produces party-sized hoagie sandwiches. For next year, Bob's Bistro predicts that 49,500 units will be produced with the following total costs: Direct materials ? Direct labor $58,000 Variable overhead 15,000 Fixed overhead 185,000 Next year, Bob's Bistro expects to purchase $125,500 of direct materials. Projected beginning and ending inventories for direct materials and work in process are as follows: Direct materials Work-in-Process Inventory Inventory Beginning $5,000 $14,800 Ending $4,900 $16,800 Next year, Bob's Bistro expects to produce 49,500 units and sell 48,800 units at a price of $16.00 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 $24,000, and total administrative expense is projected at $100,000. 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. 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 45.96 percent? Management's reaction might be