$[$The following information applies to the questions displayed below.$]$

Ross & Company is a wholesaler of hair supplies. Ross uses a perpetual inventory system. The following transactions

$($summarized$)$ have been selected for analysis:

a$.$ Sold merchandise for cash $($cost of merchandise $$33,117).$

b$.$ Received merchandise returned by customers as unsatisfactory $($but in perfect

condition$)$ for cash refund $($original cost of merchandise $$340).$

$d.$ Collected half $of$ the balance owed $by$ the customer $in(c).17,200$

$8,600$

e$.$ Granted a partial allowance relating to credit sales the customer in $($c$)$ had not yet

paid.

$f.$ Anticipate further returns of merchandise $($costing $$260)$ after year$-$end from sales

made during the year.

Ross is considering a contract to sell merchandise to a hair salon chain for $$39,000.$ This merchandise will cost Ross $$25,600.$ What

would be the increase $($or decrease$)$ to Ross gross profit and gross profit percentage? $($Round "Gross Profit Percentage" to $1$

decimal place.$)$