The following merchandise transactions occurred in December. Both companies use a perpetual inventory system. Dec. 3 Grouper Ltd. sold goods to Monty Corp. for $68,700, terms n/15, FOB shipping point. The inventory had cost Grouper $36,500. Grouper's management expected a return rate of 3% based on prior experience. 7 Shipping costs of $940 were paid by the appropriate company. 8 Monty returned unwanted merchandise to Grouper. The returned merchandise has a sales price of $2,120, and a cost of $1,140. It was restored to inventory. 11 Grouper received the balance due from Monty. Calculate the gross profit earned by Grouper on the above transactions. Gross Profit $ 31220