Module Four Problem Set Question 3 of 13 13374 = s What gross margin percentage was Donald originally expecting to earn on each product, per the information provided above? (Round answers to 2 decimal places, e.g. 52.75%.) Office chair Sit-to-stand desk Printer stand % [ 46.34 | % eTextbook and Media Solution Attempts: 2 of 2 used & Your answer is incorrect. How much of a reduction in gross margin did each product sustain after recognizing the higher costs? (Round answers to 2 decimal places, e.g. 52.75%.) Office chair Sit-to-stand desk Printer stand % [ 1085 | % % || 1178 6 margin percentage Module Four Problem Set Question 3 of 13 1.33/4 = & Current Attempt in Progress The bill of materials for each product at Donald's Office Supply is very specific, right down to the number of casters needed for each office chair. Donald recognizes how important these documents are for planning purposes, but his operations managers appreciate them as well since they use this information to guide their material requisitions when it's time for production. Here are the budgeted product costs and selling prices, respectively, for the company's three key products: Product Cost Selling Price Office chair $130 $229 Sit-to-stand desk 215 365 Printer stand 110 205 Donald has fine-tuned all cost expectations for his products, and his selling prices are quite stable for each product, as well. So, to say Donald was surprised when his accountant reported significantly less profit margin than what he was expecting is the understatement of the year. According to the accountant, the difference is almost entirely attributable to the significant and recent increase in shipping costs for the company's raw materials. These higher freight costs caused a 20% increase to the budgeted product costs presented above