Required information [The folowing 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 $18,797) b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) $31,200 350 7,500 3,750 for cash refund (original cost of merchandise $210 c. Sold merchandise (costing $3,563 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. 120 4. Hair World is considering a contract to sell merchandise to a hair salon chain for $12,500. This merchandise will cost Hair World $8,800. 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