The adjusted trial balance of Bramble Wholesale Inc. contained the following accounts at December 31, the companys year end: Bramble Wholesale INC. Adjusted Trial Balance December 31, 2021 Debit Credit Cash $11,600 Accounts receivable 18,400 Prepaid insurance 2,300 Inventory 105,700 Supplies 6,900 Land 128,600 Buildings 217,300 Accumulated depreciationbuildings $92,600 Equipment 95,200 Accumulated depreciationequipment 34,900 Accounts payable 61,100 Deferred revenue 9,900 Refund liability 3,940 Income tax payable 3,800 Bank loan payable 98,000 Common shares 50,000 Retained earnings 94,640 Sales 1,104,500 Cost of goods sold 809,900 Administrative expenses 89,000 Selling expenses 43,100 Interest expense 11,300 Interest income 2,700 Income tax expense 16,800 $1,556,100 $1,556,080

(a) Gross profit margin 26.7 % Profit margin 12.4 %

(b). The vice-president of marketing and director of human resources have proposed that the company change its compensation of the sales force to a commission basis rather than paying a fixed salary. Given the extra incentive, they expect sales to increase by 15%. They estimate that gross profit will increase by $27,000, operating expenses by $13,500, and income tax expense by $2,700. Non-operating expense is not expected to change.

Expected new gross profit $ 321600 Expected net income amount $ 147900

Calculate the revised gross profit margin and profit margin. (Round all amounts to 1 decimal place, e.g. 5.2%.) Revised gross profit margin - Revised profit margin -