Required information [The following information applies to the questions displayed below.] Castillo Styling is a wholesaler of hair supplies. Castillo Styling uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: a. Sold merchandise for cash (cost of merchandise $32,757). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) $58,240 for cash refund (original cost of merchandise $330 ). c. Sold merchandise (costing \$7,885) 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 paid. Anticipate further returns of merchandise (costing $250 ) after year-end from sales made during the year. Castillo Styling is considering a contract to sell merchandise to a hair salon chain for $37,000. This merchandise will cost Castillo Styling $24,300. What would be the increase (or decrease) to Castillo Styling gross profit and gross profit percentage? (Round "Gross Profit Percentage" to 1 decimal place.)