Income Statement Pietro Frozen Foods, Inc., produces frozen pizzas. For next year, Pietro predicts that 48,900 units will be produced, with the following total costs: Direct materials ? Direct labor 71,000 Variable overhead 26,000 Fixed overhead 185,000 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: Direct materials Work-In-Process Inventory Inventory Beginning $6,000 $11,000 Ending $5,900 $13,000 Next year, Pietro expects to produce 48,900 units and sell 48,200 units at a price of $17.00 each. Beginning inventory of finished goods is $45,500, and ending Inventory of finished goods is expected to be $37,000. 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, 188349 would be rounded to.8835 and entered as 88.35 Pietro Frozen Foods, Inc. Income Statement For the Coming Year inventory of finished goods is expected to be $37,000. 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. 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 48.05 percent? Management's reaction might be