Income Statement Fietro Frozen Foods, Inc., produces frozen pizzas. For next year, Pietro predicts that 47,900 units will be produced, with the following total costs: irect materials Direct labor 54,000 Variable overhead 16,000 Fixed overhead 180.000 Next year, Pietro expects to purchase $122,000 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 $6,000 $13,400 $5,900 $15,400 Next year, Pietro expects to produce 47,900 units and sell 47,200 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 $24,500, and otal administrative expense is projected at $100,000 eginning Ending Required: rounded to.8835 and entered as 88.35. 1. Prepare an income statement in good form. Round the percent to four decimal places before converting to a percentage. For example, .68349 would Pietro Frozen Foods, Inc. Income Statement For the Coming Year Percent Less operating expenses: 2. What if the cost of goods sold percentage for the past few years was 39.56 percent? Management's reaction might be