Hair World Inc. is a wholesaler of hair supplies, Hair World uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: $55,200 a. Sold merchandise for cash (cost of merchandise $30,797). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $390). c. Sold merchandise (costing $5,225 ) to a customer on account with terms n/60. d. Collected half of the balance owed by the customer in (c). e. Granted a partial allowance relating to credit sales the customer in (c) had not yet paid. 650 11,000 5,500 176 PA6-3 Part 4 4. Hair World is considering a contract to sell merchandise to a hair salon chain for $16,000. This merchandise will cost Hair World $10,480. What would be the increase or decrease) to Hair World's gross profit and gross profit percentage? (Round "Gross Profit Percentage" to 1 decimal place.) $ 5.520 Gross Profit increased Gross Profit Percentage decreased by to 34,5%