Income Statement Pietro Frozen Foods, Inc., produces frozen pizzas. For next year, Pietro predicts that 48,200 units will be produced, with the following total costs: Direct materials ? Direct labor 63,000 Variable overhead 22,000 230,000 Fixed overhead 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 $7,000 $12,500 Beginning Ending $6,900 $14,500 Next year, Pietro expects to produce 48,200 units and sell 47,500 units at a price of $13.00 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 $29,000, and total administrative expense is projected at $121,500. 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 % (0) % % Less operating expenses: % % 2. What if the cost of goods sold percentage for the past few years was 68.70 percent? Management's reaction might be