Required information [The following information applies to the questions displayed below.] Grayson & Kim Books, is a student co-op. Grayson & Kim Books uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: a. Sold merchandise for cash (cost of merchandise $175,870). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $668). c. Sold merchandise (costing $10,530) to a customer on account with terms n/30. $ 321,750 1,650 23,400 11,700 1,440 f. Anticipate further returns of merchandise (costing $234) after month-end from sales made during the month. 870 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. 4. Grayson & Kim Books is considering a contract to sell merchandise to a Grayson & Kim Books organization for $18,400. This merchandise will cost Grayson & Kim Books $14,720. Would this contract increase (or decrease) Grayson & Kim Books dollars of gross profit and its gross profit percentage? TIP: The impact on gross profit dollars may differ from the impact on gross profit percentage. (Round "Gross Profit Percentage" to 1 decimal place.) Gross Profit Gross Profit Percentage by to %