Hughes Hair Design is a wholesaler of hair supplies. Hughes Hair Design uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis:

a. Sold merchandise for cash (cost of merchandise $29,157).	$ 51,840
b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $230).	260
c. Sold merchandise (costing $5,035) to a customer on account with terms n/60.	10,600
d. Collected half of the balance owed by the customer in (c).	5,300
e. Granted a partial allowance relating to credit sales the customer in (c) had not yet paid.	162
f. Anticipate further returns of merchandise (costing $150) after year-end from sales made during the year.	270

Hughes Hair Design is considering a contract to sell merchandise to a hair salon chain for $17,000. This merchandise will cost Hughes Hair Design $11,300. What would be the increase (or decrease) to Hughes Hair Design gross profit and gross profit percentage?

\begin{tabular}{|l|l|l|l|l|} \hline Gross Profit & & & \\ \hline Gross Profit Percentage & & % \\ \hline & decreased & & \\ & & & \\ & & & \\ & & & \\ & & & \\ & & \end{tabular}