Income Statement Pietro Frozen Foods, Inc., produces frozen pizzas. For next year, Pietro predicts that 52,900 units will be produced, with the following total costs: Direct materials ? Direct labor 57,000 Variable overhead Fixed overhead 23,000 215,000 Next year, Pietro expects to purchase $116,500 of direct materials. Projected beginning and ending inventories for direct materials and work in process are as follows: Work-in-Process Inventory Direct materials Inventory $6,000 $5,900 $11,600 Beginning Ending $13,600 Next year, Pietro expects to produce 52,900 units and sell 52,200 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 $26,500, and total administrative expense is projected at $125,000. 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. Note: due to rounding, percentages may not add down. 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 46.06 percent? Management's reaction might be