Question: LBS is considering a contract to sell building supplies to a local home builder for $33,000. These materials will cost LBS $23,800. What would be the increase (or deacrese) gross profit and gross profit percentage? (Round to 1 decimal place.)

PB6-3 Recording Sales and Purchases with Discounts and Returns and Analyzing Gross Profit Percentage LO 6-4, LO 6-5] IThe follo Larry's Building Supplies (LBS) Is a local hardware store. LBS uses following transactions (summarized) have been selected for analysis: o perpetual inventory system The a. Sold merchandise for cash (cost of merchandise $329,350). b. Recelved merchandise returned by customers as unsatisfactory (but In perfect condition) $695,000 for cash refund (original cost of merchandise $4,500) c. Sold merchandise (costing $9,240) to a customer on account with terms 2/10, n/30. d. Collected half of the balance owed by the customer In (c) within the discount perlod. e. Granted a partial allowance relating to credit sales that the customer In (c) had not yet paid. 6,900 5.400 7,546 2,250