Handy Howard's Incorporated, is a student co-op. Handy Howard uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis:

a. Sold merchandise for cash (cost of merchandise $177,270). $ 324,500

b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $672). 1,630

c. Sold merchandise (costing $10,620) to a customer on account with terms n/30. 23,600

d. Collected half of the balance owed by the customer in (c). 11,800

e. Granted a partial allowance relating to credit sales the customer in (c) had not yet paid. 1,460

f. Anticipate further returns of merchandise (costing $236) after month-end from sales made during the month. 880 Handy Howard is considering a contract to sell merchandise to a Handy Howard organization for $18,600. This merchandise will cost Handy Howard $14,880.

Would this contract increase (or decrease) Handy Howard dollars of gross profit and its gross profit percentage? TIP: The impact on gross profit dollars may differ from the impact on gross profit percentage. (Round "Gross Profit Percentage" to 1 decimal place.)