Income Statement Pietro Frozen Foods, Inc., produces frozen pizzas. For next year, Pietro predicts that 53,900 units will be produced, with the following total costs: Direct materials ? Direct labor 69,000 Variable overhead 24,000 Fixed overhead 230,000 Next year, Pietro expects to purchase $118,500 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 $4,000 $11,800 Ending $3,900 $13,800 Next year, Pietro expects to produce 53,900 units and sell 53,200 units at a price of $13.00 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 $27,500, and total administrative expense is projected at $129,500. 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 Sales $ 691,600 100 % Cost of goods sold 427,800 61.86 X % Gross margin $ 263,800 38.14 X % Less operating expenses: Selling expenses 27,500 Administrative expenses 129,500 157,000 22.70 % Operating income $ 106,800 15.44 X %