Handy Howard's Incorporated, is a student co-op. Handy Howard uses a perpetual Inventory system, The following...

 

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Handy Howard's Incorporated, is a student co-op. Handy Howard uses a perpetual Inventory system, The following transactions (summarized) have been selected for analysis: a. Sold merchandise for cash (cost of merchandise $177,270). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $672). e. Sold merehandine (costing $10,620) to a customer on account with terma n/30. 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. f. Anticipate further returns of merchandise (conting $236) after month-end from sales made during the month. $ 324,500 1,630 23,600 11,800 1,460 880 CP6-3 (Algo) Part 4 4. Handy Howard is considering a contract to sell merchandise to a Handy Howard organization for $18,600. This merchandise will cost Handy Howard $14,880. Would this contract increase (or decrease) Handy Howard 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 by Gross Profit Percentage to Handy Howard's Incorporated, is a student co-op. Handy Howard uses a perpetual Inventory system, The following transactions (summarized) have been selected for analysis: a. Sold merchandise for cash (cost of merchandise $177,270). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $672). e. Sold merehandine (costing $10,620) to a customer on account with terma n/30. 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. f. Anticipate further returns of merchandise (conting $236) after month-end from sales made during the month. $ 324,500 1,630 23,600 11,800 1,460 880 CP6-3 (Algo) Part 4 4. Handy Howard is considering a contract to sell merchandise to a Handy Howard organization for $18,600. This merchandise will cost Handy Howard $14,880. Would this contract increase (or decrease) Handy Howard 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 by Gross Profit Percentage to

Answer rating: 100% (QA)

Solution 4 Present Proposed Difference Sales 324500 ... View the full answer