Income Statement Pietro Frozen Foods, Inc., produces frozen pizzas. For next year, Pietro predicts that 54,500 units will be produced, with the following total costs: Direct materials Direct lalo Variable overhead Fixed overhead 59,000 23,000 245,000 Next year, Pietro expects to purchase $116,000 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 $5,000 $12,600 Ending $1,900 $11,600 Next year, Pietro expects to produce 51,500 units and sell 53,800 units at a price of $16.00 each. Beginning invenitury of finished wods is $11,500, and ending inventory of finished goods is expected to be $36,000. Tolal selling experise is projected at $30,000, and total administrative experise is projected al $111,500. Required: 1. Prepare an income statement in good form. Round the percent to four decimal places before converting to a percentage. For example, .86349 would be rounded to .8835 and entered as 68.35 Note: due to rounding, percentages may not add down. Pietro Frozen Foods, Inn. 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 48.23 percent Management's reaction might he