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Income Statement Bob's Bistro produces party sured hoagie sandwiches for next year, Bob's Bato predicts that 51,500 units will be produced with the following total costs Direct materials 7 Direct labor 562,000 Vanable overhead 15,000 Fixed Overhead 225.000 Next year, Bob's Beste expects to purchase 5124,000 of direct materials. Projected beginning and ending inventories for direct materials and work in process are as follow Direct materials Work in Process Inventory Inventory Beginning $7,000 $11,400 Ending $6.900 513.400 Next year, Bob's Bistro expects to produce 51,500 units and selt 50,800 units at a price of $11.00 each. Beginning inventory of finished goods is $48,500, and ending inventory of finished goods is expected to be $10,000 Total selling expenses projected at $23.500, and total administrative expenses projected at $110,000 pro 10,000 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 Bob's Bistro Income Statement For the Coming Year Percent Less Operating expenses 2. What if the operating expenses percentage for the past few years was 42.64 percent Management's reaction might be