Income Statement Pietro Frozen Foods, Inc., produces frozen pizzas. For next year, Pietro predicts that 49,400 units will be produced, with the following total costs: Direct materials 71,000 Direct labor 18,000 Variable overhead 235,000 Fixed overhead Next year, Pietro expects to purchase $121,500 of direct materials. Projected beginning and ending inventories for direct materials and work in process are as follows: Work-in-Process Direct materials Inventory Inventory $4,000 Beginning $13,200 Ending $3,900 $15,200 Next year, Pietro expects to produce 49,400 units and sell 48,700 units at a price of $18.00 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 $112,000. 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. 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 48.57 percent? Management's reaction might be