Income Statement Pietro Frozen Foods, Inc., produces frozen pizzas. For next year, Pietro predicts that 50,000 units wil be produced, with the following total costs: Direct material Direct labor 360,000 Variable overhead Fixed overhead 25,000 220,000 Next year, Pietro expects to purchase $119,300 of direct materials. Projected beginning and ending Inventories for direct materials and work in process are as follows: Beginning Ending Direct Materials Inventory $5,600 4,900 Work-in-Process Inventory $12,500 14.503 Next year, Pietro expects to produce 50,000 units and sell 49,300 units at a price of 812.50 each. Beginning Inventory of finished goods is $42,500, and ending Inventory of finished goods is expected to be $34,000. Total selling expense is projected at $26,000, and total administrative expense is projected at $134,000. Required: 1. Prepare an income statement in good form. Round the percent to four decimal places before converting to a percentage. For example, .00345 would be rounded to 0535 and entered as 00.35. Note: due to rounding, percentages may not add down. Pietro Frozen Foods, Inc. Income Statement For the Coming Year Las operating exp Percent % % % 7. What if the pose of goods sold percentage for the past few years was 55 parent? Management's reaction might be: