Required information [The following information applies to the questions displayed below.) Hair World Incorporated 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 $28,797). $ 51,200 c. Sold merchandise (costing $4,750) to a customer on account with terms n/60. b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $220). 250 10,000 5,000 e. Granted a partial allowance relating to credit sales the customer in (c) had not yet 160 d. Collected half of the balance owed by the customer in (c). paid. f. Anticipate further returns of merchandise (costing $140) after year-end from sales made during the year. 350 4. Hair World is considering a contract to sell merchandise to a hair salon chain for $15,000. This merchandise will cost Hair World $10,000. 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 increased by $ 5,000 Gross Profit Percentage decreased to %