Emily Enterprises reports the following information on its income statement:

Required 

Compute Emily's gross profit percentage and return on sales ratio. Explain what each ratio tells us about Emily's performance. Emily is planning to add a new product and expects net sales to be \(\$ 40,000\) and cost of goods to be \(\$ 28,000\). No other income or expenses are expected to change. How will this affect Emily's gross profit percentage and return on sales ratio? What do you advise regarding the new product offering?

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Administrative expenses. $20,000 170,000 Other income 15,000 50,000 Other expense 10,000 Net sales.... Cost of goods sold Selling expenses $400,000