Income Statement Pietro Frozen Foods, Inc., produces frozen pizzas. For next year, Pietro predicts that 49,300 units will be produced, with the following total costs: Direct materials Direct labor 61,000 Variable overhead 29,000 Fixed overhead 215,000 Next year, Pietro expects to purchase $115,000 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 Beginning $6,000 $13,500 Ending $5,900 $15,500 Next year, Pietro expects to produce 49,300 units and sell 48,600 units at a price of $17.00 each. Beginning inventory of finished goods is $46,500, and ending Inventory of finished goods is expected to be $38,000. Total selling expense is projected at $22,500, and total administrative expense is projected at $110,000. Required: 1. Prepare an income statement in good form. Round the percent to four decimal places before converting to a percentage. For example, 188349 would be rounded to .8835 and entered as 88.35. Pietro Frozen Foods, Inc. Income Statement For the Coming Year Percent Next year, Pietro expects to produce 49,300 units and sell 48,600 units at a price of $17.00 each. Beginning inventory of finished goods is $46,500, and ending Inventory of finished goods is expected to be $38,000. Total selling expense is projected at $22,500, and total administrative expense is projected at $110,000. 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. Pietro Frozen Foods, Inc. Income Statement For the Coming Year Percent % 96 % Less operating expenses: % % 2. What if the cost of goods sold percentage for the past few years was 46.63 percent? Management's reaction might be