Income Statement Pietro Frozen Foods, Inc., produces frozen pizzas. For next year, Pietro predicts that 53,100 units will be produced, with the following total costs: Direct materials ? Direct labor 56,000 Variable overhead 28,000 210,000 Fixed overhead Next year, Pietro expects to purchase $130,000 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 $10,200 $4,000 Beginning Ending $3,900 $12,200 Next year, Pietro expects to produce 53,100 units and sell 52,400 units at a price of $16.00 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 $22,000, and total administrative expense is projected at $103,500. 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 % % % Less operating expenses: 8 % % 2. What if the cost of goods sold percentage for the past few years was 47.36 percent? Management's reaction might be: Further analyze sales reports Grant bonuses to production personnel Trim administrative staff Investigate production cost management