Income Statement Bob's Bistro produces party-sized hoagie sandwiches. For next year, Bob's Bistro predicts that 50,000 units will be produced with the following total costs: Direct materials ? Direct labor $100,000 Variable overhead 60,000 Fixed overhead 260,000 Next year, Bob's Bistro expects to purchase $195,500 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 $9,500 $4,500 Ending 5,000 2,500 Next year, Bob's Bistro expects to produce 50,000 units and sell 50,500 units at a price of $20.00 each. Beginning inventory of finished goods is $13,000, and ending inventory of finished goods is expected to be $10,000. Total selling expense is projected at $130,000, and total administrative expense is projected at $154,000. 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 SES % % 2. What if the operating expenses percentage for the past few years was 20 percent? Management's reaction might be