Required information [The following information applies to the questions displayed below.] 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: a. Sold merchandise for cash (cost of merchandise $32,797). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) $59,200 for cash refund (original cost of merchandise $420 c. Sold merchandise (costing $5,700 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 700 12,000 6,000 paid. 192 4. Hair World is considering a contract to sell merchandise to a hair salon chain for $17,000. This merchandise will cost Hair World $10,960. 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.) Gross Profit by Gross Profit Percentage to