Required information PB6 3 (Algo) Recording Sales and Estimated and Actual Returns, and Analyzing Gross Profit Percentage LO 6 4, LO 6 5 Skip to question The following information applies to the questions displayed below Sanders Lumber More (SLM) is a local hardware store SLM uses a perpetual inventory system The following transactions (summarized) have been selected for analysis a Sold merchandise for cash (cost of merchandise $268,350) $610,000 b Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $2,375) 3,800 c Sold merchandise (costing $4,320) to a customer on account with terms n 30 7,200 d Collected half of the balance owed by the customer in ( c ) 3,600 e Granted a partial allowance relating to credit sales the customer in ( c ) had not yet paid 1,500 f Anticipate further returns of merchandise (costing $2,330) after year end from sales made during the year 3,600 PB6 3 (Algo) Part 4 SLM is considering a contract to sell building supplies to a local home builder for $22,200 These materials will cost SLM $17,760 Would this contract increase (or decrease) SLM's dollars of gross profit and its gross profit percentage (Round Gross Profit Percentage to 1 decimal place )

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Required information PB6-3 (Algo) Recording Sales and Estimated and Actual Returns, and Analyzing Gross Profit Percentage [LO 6-4, LO 6-5] Skip to question [ The

Required information

PB6-3 (Algo) Recording Sales and Estimated and Actual Returns, and Analyzing Gross Profit Percentage [LO 6-4, LO 6-5]

Skip to question

[The following information applies to the questions displayed below.]

Sanders Lumber & More (SLM) is a local hardware store. SLM uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis:

a. Sold merchandise for cash (cost of merchandise $268,350).	$610,000
b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $2,375).	3,800
c. Sold merchandise (costing $4,320) to a customer on account with terms n/30.	7,200
d. Collected half of the balance owed by the customer in (c).	3,600
e. Granted a partial allowance relating to credit sales the customer in (c) had not yet paid.	1,500
f. Anticipate further returns of merchandise (costing $2,330) after year-end from sales made during the year.	3,600

PB6-3 (Algo) Part 4

SLM is considering a contract to sell building supplies to a local home builder for $22,200. These materials will cost SLM $17,760. Would this contract increase (or decrease) SLM's dollars of gross profit and its gross profit percentage? (Round "Gross Profit Percentage" to 1 decimal place.)