Income Statement Pietro Frozen Foods, Inc., produces frozen pizzas. For next year, Pietro predicts that 50,400 units will be produced, with the following total costs: Direct materials ? Direct labor 56,000 Variable overhead 27,000 Fixed overhead 190,000 Next year, Pietro expects to purchase $128,500 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 $7,000 $15,000 Ending $6,900 $17,000 Next year, Pietro expects to produce 50,400 units and sell 49,700 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 $21,000, and total administrative expense is projected at $106,000. 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 45.30 percent? Management's reaction might be