Net sales forthe year were $300,000 and cost of goods sold was $174,000 for the company's existing products.

Net sales for the year were $300,000 and cost of goods sold was $174,000 for the company's existing products. A new product is presently under development and has an expected selling price of not more than $55 per unit in order to remain competitive with similar products in the marketplace.

Required:

(a) Calculate gross profit and the gross profit ratio for the year.