The bill of materials for each product at William's Office Supply is very specific, right down to the number of casters needed for each office chair. William 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: Office chair Sit-to-stand desk Printer stand Product Cost $80 165 60 Selling Price $129 265 105 4 William has fine-tuned all cost expectations for his products, and his selling prices are quite stable for each product, as well. So, to say William 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. (a) What gross margin percentage was William originally expecting to earn on each product, per the information provided above? (Round answers to 2 decimal places, eg. 52.75%) Gross margin percentage Office chair % Sit-to-stand desk % Printer stand % (b) How much of a reduction in gross margin did each product sustain after recognizing the higher costs? (Round answers to 2 decimal ploces, eg. 52.75%) Gross margin percentage Office chair % Sit-to-stand desk % Printer stand %