Income Statement Pietro Frozen Foods, Inc., produces frozen pizzas. For next year, Pietro predicts that 52,300 units will be produced, with the following total costs: Direct materials ? Direct labor Variable overhead 50,000 16,000 Fixed overhead 185,000 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 Inventory Work-in-Process Inventory $4,000 $12,700 Beginning Ending $3,900 $14,700 Next year, Pietro expects to produce 52,300 units and sell 51,600 units at a price of $15.00 each. Beginning inventory of finished goods is $47,500, and ending inventory of finished goods is expected to be $39,000. Total selling expense is projected at $26,500, and total administrative expense is projected at $120,000. 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 46.27 percent? Management's reaction might be: Variable overhead Fixed overhead 16,000 185,000 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 $4,000 Beginning Ending Inventory $12,700 $14,700 $3,900 Next year, Pietro expects to produce 52,300 units and sell 51,600 units at a price of $15.00 each. Beginning inventory of finished goods is $47,500, and ending inventory of finished goods is expected to be $39,000. Total selling expense is projected at $26,500, and total administrative expense is projected at $120,000. 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: Further analyze sales reports % $ Grant bonuses to production personnel Trim administrative staff Investigate production cost management entage for the past few years was 46.27 percent? Management's reaction might be