The bill of materials for each product at Steven's Office Supply is very specific; Steven recognizes the importance of the documents for planning purposes, the manager uses this information as a guide for materials requisitions at time of production.

These are the budgeted product costs and selling prices, respectively for the company's three key pro

Product Cost Selling Price

Office chairs $$145$ $$239$

Sitting desk $230395$

Printer stand $125235$

Steve has fine tuned all cost expectations for his products, his selling prices are stable for each product; recently Steven was surprised when his accountant reported a significant less profit margin than what was expected.

Accountant reports the difference is attributable to recent increase in shipping costs for the company's raw materials. These higher freight costs caused a $20\%$ increase in the budgeted product costs presented above.

$($a$)$: What gross margin percentage was Steven originally expecting to earn on each product, per information given?

Office Chair Desks Printer Stand

Gross Margin $\%\_\_\_\_\_\_\_\_\_\_\%\_\_\_\_\_\_\_\_\_\_\%\_\_\_\_\_\_\_\_\_\_\%$

$($b$)$: How much of a reduction in gross margin did each product sustain after recognizing the higher costs?

Office Chair Desk Printer Stand

Gross Margin $\%\_\_\_\_\_\_\_\_\%\_\_\_\_\_\_\_\%\_\_\_\_\_\_\_\%$