Kolby Enterprises reports the following information on its income statement:

Net sales $250,000

Administrative expenses $10,000

Cost of goods sold 150,000

Other income 15,000

Selling expenses 50,000

Other expense 10,000

Required Calculate Kolbys gross profit percentage and return on sales ratio. Kolby is planning to add a new product and expects net sales to be $45,000 and cost of goods to be $38,000. No other income or expenses are expected to change. How will this affect Kolbys gross profit percentage and return on sales ratio? (Round all answers to 1 decimal place.)

Gross Profit Percentage 40 % Return on Sales 18 % IF NEW PRODUCT IS MADE Gross Profit Percentage 36.3 % Return on Sales X%